China's steel exporters closely watch shipping disruptions amid Middle East tensions

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Disruption to shipping through the Strait of Hormuz is rippling through steel markets, and China’s exporters are watching closely.

The Strait is a key route serving major steel importers like Saudi Arabia, the UAE and Qatar.

For China, that matters: the region absorbed more than 14 million metric tons of Chinese steel in 2025 -- almost 11% of China's steel exports.

The conflict has seen several steel shipments being canceled, delayed or redirected so far, with limited offers heard amid climbing freight rates and longer lead times being implemented.

Platts Slab CFR Southeast Asia weekly prices rose to a 20-month high of $508/mt on March 19.

Steel export loading volumes at Chinese ports have already fallen, notably for shipments to the Middle East, Mediterranean and South Asia.

If the disruption persists, S&P Global Energy CERA analysts caution the impact on China’s steel market could go beyond shipping delays.

With China's demand already soft and mills heavily reliant on exports, losing access to this growing market could push more steel back into the domestic market, adding downward pressure on prices, or forcing mills to hunt for alternative buyers.