According to Mysteel, the recent tense situation in the Red Sea region has had a serious impact on China’s steel exports. Due to the attack by the Hussein organization, ships on the Red Sea route were suspended, which not only led to an increase in export costs but also affected steel orders for exporters and affected areas. Some ships are forced to divert to South Africa, and carriers who choose not to do so will face an additional 15% fee. Affected by the situation, the willingness of Chinese steel exporters to trade with Middle Eastern buyers has decreased, and shipping costs have increased, further limiting exports.
Not only on the Red Sea route, but also on other routes, the attacks by the Hussai organization have had an impact on shipping costs. The shipping cost from China to Africa has increased by $2-4 within a week, but the route from China to nearby areas has been less affected by the tense situation in the Red Sea, and there has even been a decrease in shipping costs. Under the current situation, Chinese steel exporters need to cope with the dual challenges brought about by market and route adjustments.