Escalating military tensions following US–Israeli strikes on Iran and Iran’s subsequent retaliation have begun to disrupt maritime activity across the Gulf, with potential implications for steel and raw material shipments if the conflict persists.
Shipping through the Strait of Hormuz has become increasingly risky. While no official closure has been announced, vessel traffic has dropped sharply, with ships reportedly stranded on both sides of the passage.
Market participants warn that freight rates have already risen by 15–20%, particularly on Asia–Middle East routes. Freight for a 40,000 mt vessel from China to Turkey has increased to around $40/mt, from $35/mt previously.
Steel billet and flat steel shipments are considered most vulnerable, given the region’s reliance on imports. Traders noted that delays, cargo rerouting and potential cancellations—especially involving Iranian material—could push regional steel prices higher, particularly for readily available stock.
VietnamSteel by Hoa Sen Group
