Record 2013 S. Arabian budget to boost demand for billet and finished steel imports

The 2013 budget of Saudi Arabia, the world's biggest oil exporter, is the highest-ever annual budget announced by the country. The new budget totals SAR 820 billion (about $219 billion), with SAR 100 billion reserved for health, social welfare and transportation, and SAR 204 billion earmarked for education. In addition, SAR 36 billion is to be assigned for municipality services, while SAR 65 billion will be spent on infrastructure and transportation projects. Furthermore, SAR 57 billion will be spent on other sectors including water, industry and agriculture.
 
When Saudi Arabia's budget for 2012 was declared, the country's finished steel and billet import activity indicated an increase and Saudi Arabia became one of the most important billet export destinations for Turkey and the CIS.
 
Billet and finished steel demand in Saudi Arabia is expected to increase further with the record budget announced for this year, amid the expected implementation of new projects and investments. Improved demand from Saudi Arabia will likely bring some relief to the steel markets of the CIS and Turkey, which are facing difficulties due to increasing costs, lower demand and economic problems.