Ongoing geopolitical strains across the Middle East have created high shipping uncertainties over the Red Sea and Strait of Hormuz, exerting multifaceted pressure on China’s stainless steel export sector. The Middle East represents a key overseas destination for Chinese stainless steel. In 2025, China exported around 764,000 tonnes of stainless steel to the region, accounting for over 15% of national total exports. Countries including Saudi Arabia, the UAE and Kuwait maintain robust demand for stainless steel plates, welded pipes and duplex grades, driven by infrastructure, oil-gas and seawater-desalination projects.

Due to navigational security risks, major carriers have imposed war-risk surcharges. Vessels are forced to reroute via the Cape of Good Hope, extending transit time by 14-20 days and pushing up ocean freight plus insurance costs, which directly squeeze profit margins of exporters. Several shipments have been diverted and discharged at transshipment ports, incurring extra demurrage, storage and transit-clearance risks and raising execution difficulties for suppliers. Many overseas buyers hold back on long-term contracts amid delivery uncertainty and only place short-term, small-volume orders. Some purchasing demand has shifted toward nearby suppliers such as Turkey and India.

On the cost side, heightened regional tensions lift global oil prices and drive up fuel and logistic expenses, indirectly increasing production and delivery costs for stainless steel. While rigid demand persists from local Middle-East infrastructure and energy projects, freight premiums erode the price competitiveness of commodity-grade stainless steel. High-value-added products such as duplex steel and corrosion-resistant special pipes remain relatively resilient thanks to their unique performance advantages.

Industry analysts note that short-term disruptions in the Middle East market will not ease quickly. Exporters are advised to implement riskmitigation measures: clarify logistics-risk allocation and surcharge-sharing clauses in sales contracts, fully assess potential delivery delays, diversify customer bases toward Southeast Asia and South Asia, and expand exports of high-end special stainless steel to offset higher logistics costs via product premium.