A recent blockade of the Strait of Hormuz on February 28 has disrupted key shipping routes, forcing Chinese steel exporters to pause new orders amid soaring freight costs.

In 2025, China exported about 14.36 million tons of steel to the Middle East, accounting for 10.7% of its total exports.

Chinese steel traders warned that a prolonged closure exceeding one month could severely impact domestic prices as unsold inventory remains in China.

Although current shipments already at sea may take a month to arrive, exporters remain cautious, waiting for the situation to stabilize. If the region's main gateway stays closed, mills must find alternative buyers to offset weak domestic demand and avoid significant financial pressure.