Chinese billet exports to GCC soar in July as logistics crisis persists

Chinese exports of semi-finished steel (primarily billets, HS 7207) to GCC countries surged in July 2026, as regional steelmakers increasingly relied on imported feedstock amid prolonged logistics disruptions affecting steel supply chains across the Gulf.

MEsteel analysis of Chinese customs data shows billet exports to GCC countries reached approximately 435,600 tons in July, compared with just 65,200 tons in the same month last year, highlighting the sharp increase in regional demand for imported billets.

Table 1. Chinese billet exports to GCC – July

Despite the sharp increase in Chinese billet shipments, billet availability across the GCC remained constrained. Chinese 3sp billet export offers were generally reported around USD 450-460 per ton FOB, well below MESTEEL’s latest UAE billet assessment of USD 640-650 per ton. However, the difference reflected far more than freight alone. Freight for full-cargo vessels from China to the Gulf increased from around USD 70 per ton during the second quarter to approximately USD 80-100 per ton as congestion and regional tensions intensified. Buyers also faced higher war-risk insurance premiums, vessel shortages, prolonged waiting times before berthing, port congestion and demurrage costs. As a result, the key challenge was not securing competitively priced imported billets, but ensuring cargoes could be delivered reliably and on time.

Market participants said UAE rerollers continued purchasing billet from ECAS-approved Chinese mills, although prolonged congestion at Gulf ports continued delaying cargo arrivals. According to market participants, vessels loading cargoes from China for Jebel Ali and Dammam were increasingly fixed with waiting clauses linked to uncertainty surrounding the Strait of Hormuz, while major regional ports, including Jebel Ali, Sohar, Fujairah and Jeddah, experienced waiting times of three to four weeks. Industry sources also indicated that some cargoes were diverted through alternative Gulf ports before reaching their final destinations.

The July figures reinforce the broader trend seen throughout 2026. During the first seven months of the year, Chinese billet exports to GCC countries climbed to approximately 1.53 mln tons, compared with around 586,000 tons during the corresponding period of 2025, representing an increase of approximately 161pct YoY.

Saudi Arabia remained the largest destination, receiving approximately 824,000 tons during January-July 2026, followed by the UAE with around 426,000 tons and Oman with approximately 281,000 tons. The sharp increase in shipments to Oman coincided with the growing use of alternative Gulf logistics corridors as traders sought to bypass congestion and shipping disruptions elsewhere in the region. While customs data does not distinguish between domestic consumption and onward distribution, the trend also reflects Oman’s growing role as a regional logistics gateway during the disruption.

Table 2. Chinese billet exports to GCC – Jan-Jul