GCC steel trade faces mounting uncertainty as Hormuz disruption continues

• Rerouting of cargoes adds to mounting logistics costs
• Traders suspend fresh offers on surging freights, shipping problems

SteelOrbis: Uncertainty has been growing across the Gulf Cooperation Council (GCC) steel market in recent weeks as disruptions in the Strait of Hormuz continue to affect established trade flows and logistics patterns. Cargo movements have become less predictable, while freight conditions remain highly volatile, prompting market participants to act cautiously.
At the same time, concerns over potential supply tightness have started to emerge, leading to increased efforts to identify alternative routes and workable logistics solutions.

Beneficiaries of disruption

Egypt’s Red Sea ports have emerged as key beneficiaries of this shift, reporting increased cargo activity as shipments are redirected away from the Gulf. According to local media reports, some steel cargoes are being discharged at Red Sea gateways and then routed onward via land connections toward GCC markets, though longer transit times and additional handling requirements have increased overall logistics costs.

Meanwhile, Saudi Arabia has been strengthening its inland logistics capabilities through the expansion of its trucking network to support cross-border freight movement across the GCC. According to official statements, this is aimed at ensuring smoother cargo distribution, particularly for shipments arriving through Red Sea ports.

At the same time, the Oman-UAE corridor has gained importance as an alternative route, with ports such as Sohar increasingly used as entry points for diverted cargo. According to regional reports, this corridor is expected to facilitate cargo flows into the UAE, although recent security concerns near some Omani ports have added to market caution.

Trade subdued

“Nothing is clear yet. There are still no firm offers in the HRC segment, as market players are trying to find workable routes. Freight remains highly uncertain and, with the recent issues around some Omani ports, suppliers are staying cautious,” a UAE-based source commented.

As a result, the GCC steel market is among those most affected, remaining in a highly uncertain position, with disrupted supply flows and limited trading activity.

In the flat steel segment, particularly HRC, which accounts for a significant share of imports, price visibility has weakened as many suppliers have refrained from issuing fresh offers due to unclear freight costs and unresolved shipping routes, leaving buyers cautious and activity subdued until clearer conditions emerge.

This article is published as part of an article sharing agreement between SteelOrbis and BigMint.