Shipping disruptions in the Strait of Hormuz have halted Chinese steel shipments to the Persian Gulf, causing a sharp decline in export volumes.

Statistics from March show a drop of 19% in Middle East-bound cargo compared to last year, reaching about 1.5 million tons. This followed a weak performance in the first two months of this year, where total steel exports fell by 6.2% year on year to 17.37 million tons.

Rising global energy costs and a wave of international anti-dumping (AD) investigations further pressure Chinese producers. Major markets, including Vietnam and South Korea, have already imposed AD duties on Chinese hot-rolled steel products.

Despite soft domestic demand providing competitive pricing, 2026 finished steel exports are expected to decrease by 11.1% to roughly 105.8 million tons. While Chinese billets remain competitive in Asia, the combination of geopolitical instability and trade barriers continues to weigh on the annual outlook.