Market Segment
May 4, 2026
CRU: Baosteel has second thoughts about Saudi investment
Written by CRU
This item was first published by CRU. To learn about CRU’s global commodities research and analysis services, visit www.crugroup.com.
Chinese major Baosteel will re-evaluate its investment in a steel plate making joint venture in Saudi Arabia because war in the Middle East has added uncertainties to the project, Baosteel Chairman Zou Jixin said.
“We have become more cautious about the investment given the current situation … We have recalled 13 employees dispatched to Saudi Arabia earlier,” Reuters quoted him as saying in a conference call with investment analysts.
Baosteel agreed in 2024 with Saudi Aramco and the Saudi Public Investment Fund (PIF) to build a steel plate manufacturing plant in Saudi Arabia. Baosteel holds 50% in the JV; the Saudi pair 25% each.
The spread of Iran’s missile strikes to nearby countries following Israeli-US air strikes on the country late February has pushed up logistics costs and led to accumulated inventory as unloading cargoes has become difficult at some ports. However, the overall impact on Baosteel is manageable, said Zou.
Despite the growing geopolitical uncertainties, the company’s aim is to export 10 Mt of steel products this year as it foresees growing overseas demand.
