Chinese steel exports to GCC decline in August as logistics disruptions persist

Chinese steel exports to GCC countries declined to approximately 817,300 tons in August 2026, down 7.6 pct YoY and 19.2 pct from July, as prolonged logistics disruptions continued to weigh on regional steel trade despite easing Chinese export prices.

MEsteel analysis of Chinese customs data shows exports to the GCC reached approximately 6.37 mln tons during the first eight months of 2026, down 13.3 pct YoY from around 7.35 mln tons in the corresponding period of 2025.

Table 1. Chinese steel exports to GCC by major product

Customs data showed diverging trends across the major steel product groups. Billets (HS 7207) remained the best-performing category, with August shipments reaching approximately 225,900 tons, up 209 pct YoY, although down 48 pct from July’s exceptionally strong level. During January-August, billet exports increased 167 pct YoY, highlighting GCC steelmakers’ continued reliance on imported semi-finished steel.

In contrast, exports of most finished steel products remained under pressure. HR steel (HS 7208) exports declined 30 pct YoY in August and were down 35 pct during the first eight months of the year. Coated and painted steel products (HS 7210-7212) recovered from July but remained 25 pct below August 2025 levels, while CR steel (HS 7209) rebounded month on month but continued to trail last year’s cumulative volumes.

Chinese export prices continued easing during August as mills sought to improve overseas sales. However, lower Chinese steel prices failed to stimulate stronger GCC buying as high freight costs, war-risk insurance premiums, vessel shortages and persistent port congestion continued disrupting deliveries. Market insiders said delivery reliability remained a more important consideration than outright pricing.

Saudi Arabia remained the largest destination for Chinese steel exports in August, with shipments increasing 7.7 pct YoY to approximately 381,700 tons. During January-August, exports to Saudi Arabia edged 0.5 pct higher to 3.53 mln tons, making it the only major GCC market to maintain volumes broadly in line with last year. In contrast, exports to the UAE remained under pressure, falling 34.3 pct YoY in August and 37.6 pct during the first eight months of the year, while shipments to Oman continued expanding rapidly, rising 134 pct YoY in August and 101 pct during January-August.

Table 2. Chinese steel exports to GCC by destination

Market participants told MESTEEL that logistics challenges have continued into September. Congestion remains severe at several Gulf ports, with waiting times at Fujairah reportedly extending to around two months, while delays at Jeddah have prompted some vessels to discharge cargoes at Yanbu. According to market sources, vessels loading steel cargoes from China for the UAE and Saudi Arabia continue to include waiting clauses linked to uncertainty surrounding Gulf shipping routes, indicating that the logistical constraints behind August’s weaker trade flows have yet to ease.