Steel import sourcing shifted towards regional suppliers during the second quarter of 2026, as geopolitical tensions and disruptions to maritime logistics altered supply patterns across the Gulf.
Imports of semi-finished and finished steel products under HS 7207-7229 reached 114,431 tons in H1 2026, up 24.3pct YoY. Semi-finished steel remained the largest category, accounting for almost half of total imports, but the more notable development was the changing origin of supplies as the year progressed.
GCC suppliers accounted for around 51pct of Bahrain’s steel imports in H1, with their share increasing in several finished steel categories during the second quarter. The shift was particularly visible in long and flat products, rather than being driven solely by semi-finished steel.
Long product imports reached 37,159 tons in H1 2026, down 13.8pct YoY. The category included wire rod, rebar and other bars, as well as sections. Wire rod was the largest individual long-steel category, with imports rising 39.7pct YoY to 15,796 tons from 11,305 tons, although lower volumes in other long products resulted in an overall decline. Saudi Arabia remained the leading regional supplier, and the GCC share of long-product imports increased from around 70pct in Q1 to 77pct in Q2.
Flat steel imports declined 17.9pct to 18,461 tons. Hot-rolled flat steel remained the largest flat-product category, although imports fell 30.7pct YoY to 9,269 tons from 13,368 tons. Despite lower overall flat-steel imports, the sourcing pattern changed significantly, with the GCC share increasing from around 26pct in Q1 to 49pct in Q2. Saudi Arabia and the UAE were among the main regional suppliers, while China remained the largest individual source during H1.
Semi-finished steel imports reached 56,528 tons, up 140.4pct YoY and representing 49.4pct of total imports. However, the large increase was concentrated earlier in the year, with billet imports slowing considerably towards the end of the first half. The sourcing pattern was also more mixed than in finished steel, with India remaining the largest source and Oman and Saudi Arabia providing significant regional volumes.
The shift towards regional supply came against a backdrop of significant geopolitical and logistics disruption from late February onwards. Disruptions to maritime routes, higher freight and war-risk costs and uncertainty around Gulf shipping made procurement from distant origins more challenging, while suppliers in Saudi Arabia, Oman, the UAE and other GCC markets benefited from geographical proximity and alternative regional logistics routes.
| Segment | H1 2025 (tons) | H1 2026 (tons) | YoY | H1 2026 share | Major H1 2026 origins |
|---|---|---|---|---|---|
| Semi-finished steel | 23,514 | 56,528 | +140.4% | 49.4% | India 33,120 tons; Oman 12,284 tons; Saudi Arabia 11,124 tons |
| Long products | 43,085 | 37,159 | -13.8% | 32.5% | Saudi Arabia 19,771 tons; China 6,122 tons; Qatar 5,380 tons |
| Flat products | 22,484 | 18,461 | -17.9% | 16.1% | China 7,616; Saudi Arabia 3,115 tons; UAE 3,001 tons; India 2,212 tons |
| Stainless & alloy steel | 3,002 | 2,282 | -24.0% | 2.0% | Saudi Arabia 820 tons; China 639 tons; Taiwan 211 tons |
| Total | 92,086 | 114,431 | +24.3% | 100% | India 38,049; Saudi Arabia 34,829; China 14,377; Oman 13,609 |
Source: Bahrain Customs; MESTEEL analysis. HS 7201-7206, covering raw materials and scrap, excluded.