Middle East

During the first quarter of 2026, the Middle East stainless steel and special alloys market saw a continuation of the stable but cost-pressured environment witnessed in the final quarter of 2025, with logistics becoming the main differentiating factor between the two periods. While underlying demand remained broadly steady across construction, oil/gas and desalination sectors, the market shifted further towards supply chain-driven pricing and delivery constraints rather than demand-driven movements.

The most significant factor in the first quarter was the continued disruption to Red Sea shipping, which extended transit routes and increased the dependency on longer alternative shipping corridors. This resulted in: longer delivery times from Asia to Gulf Cooperation Council (GCC) markets; higher freight and insurance costs for stainless steel shipments; and increased pressure on stockholding strategies among regional distributors. Supply chains remained operational but less efficient, with buyers maintaining higher inventory buffers when compared to the fourth quarter of last year.

Europe’s stainless steel exports also remained relatively constrained, contributing to an ongoing redirection of Asian material towards Middle Eastern markets, increasing competition in regional distribution channels.

Across the GCC, stainless steel demand remained stable quarter on quarter, with no major expansion or contraction, but pricing was influenced more by logistics and landed cost movements. Flat and long stainless steel products remained the core demand base, with

200 and 300 series grades continuing to dominate consumption while duplex grades maintained their niche but stable demand in industrial and offshore applications.

Africa continued to show gradual but still limited consumption growth, mainly in infrastructure-related applications, although this was constrained by logistics and import dependency.

The UAE maintained its position as the primary regional hub for nickel and high-performance alloys during the first quarter of 2026. Market conditions were characterised by:

stable demand from the oil/gas, desalination and industrial sectors; continued requirements for high-performance alloys such as Inconel, Hastelloy and Monel; a slight increase in landed costs driven by freight and insurance premiums; and strong re-export and redistribution activity across the GCC. Demand remained resilient despite higher costs as most consumption is linked to critical infrastructure and long-cycle industrial projects.

Saudi Arabia remained the largest end-user market, while the UAE continued to function as the key trading and processing centre.