Middle East

The Gulf Cooperation Council (GCC) steel market crisis has been managed through co-ordinated supply-side interventions, procurement optimisation and trade-flow adjustments across key regional markets, particularly Saudi Arabia, the United Arab Emirates (UAE) and Qatar. The focus has been on securing recycled steel availability, stabilising input costs and maintaining mill operations.

There has been a notable shift among GCC mills from imported billet to recycled steel-based production. Saudi Arabia’s centralised recycled steel allocation and mills’ increased reliance on recycled steel have accelerated a move towards a recycled steel-driven production model, while regional trade flows continue to be influenced by global market dynamics.

In the individual markets, a state-coordinated recycled steel import allocation mechanism is being deployed in Saudi Arabia to mitigate feedstock constraints and stabilise mill operations. Carbon steel prices have increased by Saudi Riyal 50-75 per tonne. Meanwhile, the UAE has seen fluctuating recycled steel exports and a rebalancing towards regional consumption. And in Qatar and across the GCC, there have been demand adjustments through project rescheduling and controlled procurement.

Turkey’s stable scrap import demand has been supporting global price benchmarks whereas logistics disruption in the Red Sea region and beyond has led to freight rerouting and higher insurance costs.