Industry News

1、 Market price level
Basic quotation range
The market price of ordinary galvanized light steel keel is about 10-20 US dollars per square meter (equivalent to 37-75 Saudi riyals); The price of high-end aluminum zinc or thickened models can reach 20-30 US dollars per square meter (75-113 Saudi riyals), depending on specifications, brands, and purchase quantities.
Bulk procurement of engineering projects can receive a discount of 5% -15%.
Composition of Import Costs
Raw material cost: The export price of hot-rolled coils from China (FOB) is approximately $462 per ton (May 2025);
Saudi Arabia import tariffs: Starting from October 2024, the import customs service fee will be reduced to 0.15% of the value of the goods (up to 500 riyals per order), but the previous trend of multiple countries imposing tariffs on steel may indirectly push up the landed price;
Transportation premium: With over 50% dependence on Chinese steel in the Middle East, the terminal price may increase by 10% -25% after adding up land transportation costs.

2、 Supply and demand and policy environment
Infrastructure driven surge in demand
Saudi Arabia's "2030 Vision" promotes large-scale infrastructure projects such as new city development and industrial parks. By Q3 2025, the rental price of Grade A office buildings in Riyadh will increase by 20.8% year-on-year, and the demand for hotel construction will also rise, directly driving the purchase of light steel keel.
Local production capacity and technological shortcomings
Saudi Arabia's local light steel keel production capacity is insufficient, relying on Chinese equipment (such as the Cangzhou Zhongtuo production line) and technical support;
International brands occupy the main market share through local agents.
Certification and compliance barriers
Import requires SASO certification (such as SASO 2902:2018 energy efficiency standard), which will be mandatory from June 2025. Uncertified products are prohibited from customs clearance.

3、 Trends and Risks
Short term volatility risk: The global steel market is experiencing an increase in volume and a decrease in price (with China's average export price dropping by 33.4% year-on-year in Q1 2025), but if Saudi Arabia tightens its tariff policy, it may offset the price advantage;
Long term growth potential: The annual compound growth rate of the Middle East light steel keel market is expected to be 5.5% (before 2030), and the demand for modernization of Saudi Arabia's construction will continue to be released;
Alternative competition: The recycling price of scrap steel is about 2510 yuan/ton, and low-priced alternative solutions may squeeze the low-end light steel keel market.