Middle East & Africa

During the second quarter, the Middle East stainless steel and special alloys market remained resilient despite heightened geopolitical tensions across the region. In the first quarter, the primary concern had been the continuation of Red Sea shipping disruption; the ensuing three months were characterised by increased uncertainty surrounding regional shipping routes, particularly in relation to the Strait of Hormuz. Logistics, freight costs and supply chain reliability thus remained the principal factors influencing regional trade.

Demand across the Gulf Cooperation Council (GCC) remained broadly stable, supported by the oil/gas, petrochemical, desalination, power generation and industrial sectors. Purchasing decisions continued to focus on securing material availability rather than on achieving the lowest purchase price as buyers sought to minimise supply chain risks.

Higher freight costs, elevated war-risk insurance premiums and longer shipping lead times continued to increase landed costs for imported stainless steel and special alloys throughout the quarter. Although supply chains remained operational, regional distributors maintained higher inventory levels to improve supply security and reduce exposure to logistics disruption.

Market pricing during the second quarter was influenced primarily by transportation costs and supply chain conditions rather than significant changes in global stainless steel production or underlying demand. Nickel prices and energy markets also remained volatile during the quarter, contributing to continued uncertainty across the supply chain and to cautious procurement strategies.

Across the GCC, demand for stainless steel has remained stable. Consumption has continued to be driven by infrastructure developments, industrial maintenance, energy projects and downstream manufacturing. Standard 200 and 300 series stainless steels have remained the most widely consumed grades, while duplex stainless steels and nickel-based alloys such as Inconel, Hastelloy and Monel have continued to be specified for corrosion-resistant applications in the oil/gas, desalination and chemical processing sectors.

The UAE has maintained its position as the region’s principal trading, processing and re-export hub for stainless steel and special alloys. Saudi Arabia has remained the largest end-user market, supported by continued investment in energy and industrial diversification projects.

Across Africa, meanwhile, market conditions have remained mixed. South Africa has continued to dominate regional stainless steel consumption while demand across many other African markets has remained constrained by logistics challenges, import dependency and broader economic conditions.