GCC imports of Chinese HR steel remain under pressure in July

Chinese exports of hot rolled (HR) steel (HS 7208), including coils and plates, to GCC countries remained under pressure in July 2026, despite easing Chinese export prices, as prolonged logistics disruptions, high freight costs and shipping uncertainty continued to weigh on finished steel imports across the Gulf.

MEsteel analysis of Chinese customs data shows exports of HR steel to GCC countries declined to approximately 331,900 tons in July, compared with around 439,400 tons in the same month last year, representing a decline of approximately 24 pct YoY. Compared with June, exports eased by a further 2 pct, highlighting that lower prices alone were insufficient to revive regional buying amid persistent logistics uncertainty.

Table 1. Chinese hot rolled steel exports to GCC – July

Chinese HRC prices in the GCC market also eased during the summer, with MESTEEL’s 3mm Chinese HRC CFR UAE assessment declining from USD 600-610 per ton in mid-May to USD 560-570 per ton by late July. However, the lower price levels did not translate into stronger GCC imports, as shipping disruptions and higher logistics costs continued to affect cargo deliveries amid regional tensions.

Market participants said delivery certainty remained a more important consideration than outright pricing, with many buyers preferring to delay purchases until shipping conditions improved or source material from local and regional suppliers. According to market participants, vessels loading cargoes from China for the UAE and Saudi Arabia increasingly included waiting clauses linked to uncertainty surrounding the Strait of Hormuz and the Red Sea.

The product mix also changed during July. Exports of hot rolled coils declined by approximately 52 pct YoY to around 125,600 tons, while shipments of hot rolled sheets and plates increased by approximately 15 pct to around 206,300 tons. Overall, Chinese HR steel exports to the GCC remained significantly below year-earlier levels.

The July figures reinforce the broader trend observed throughout 2026. During the first seven months of the year, Chinese exports of HR steel to GCC countries reached approximately 2.14 mln tons, down 36 pct YoY, reflecting the impact of prolonged logistics disruptions on regional steel trade.

Saudi Arabia remained the largest destination for Chinese HR steel exports during January-July 2026 at around 1.30 mln tons, followed by the UAE at 609,000 tons and Oman at 172,000 tons. The UAE recorded the sharpest decline among the major GCC destinations, with imports falling by around 60 pct YoY, while Oman was relatively more resilient. Market participants said some cargoes originally intended for the UAE were routed through alternative Gulf gateways, including Omani ports, as shipping disruptions affected normal trade routes. The increased use of UAE-Oman logistics corridors also coincided with the sharp rise in Chinese steel shipments to Oman during the period.

Table 2. Chinese hot rolled steel exports to GCC – Jan-Jul