By Steel markets across the GCC are facing severe disruption due to logistical challenges around the Strait of Hormuz. Shipments of key raw materials like iron ore pellets and ferroalloys have been delayed, forcing regional mills to cut production. At the same time, freight costs have surged dramatically, with container rates jumping multiple times in recent weeks.
Adding to the pressure, Middle East steel output dropped sharply in March, falling over 30% year-on-year amid regional tensions.
Analysis:
This is no longer just a price story but it’s a supply shock. GCC markets are entering a tight phase where reduced output plus expensive logistics will keep steel prices elevated. Buyers are shifting towards short-term sourcing, signaling a more volatile and reactive trading environment.
