Saudi Basic Industries Corporation (Sabic) is likely to review the planned expansion of the Saudi Iron and Steel Company (Hadeed), its metals affiliate, following a decline in steel prices.

Sabic chief executive Mohamed Al Mady told reporters today that the low steel prices would give the company second thoughts about the expansion projects of Hadeed.

He was speaking after Sabic announced a 29 per cent fall in its fourth quarter profit.

"(Steel) prices are going down...therefore any company would think twice before expansion," Al-Mady said when asked about two Hadeed projects for which feasibility studies are under way, one in Rabigh and one in Jubail.

The two plants were envisaged to cost $4.26 billion.

Al-Mady said the outlook for 2015 was unpredictable and contingent on oil prices.

He added that Sabic would stick to its strategic plan for growth up to 2025, with investments focused on China, North America and Saudi Arabia. - Reuters