Strait Of Hormuz Back in Crisis: US Reimpositions Iran Blockade And Proposes 20% Cargo Transit Fee

The US-Iran ceasefire - which had briefly eased Middle East shipping risk - has collapsed. With new strikes exchanged and the Iranian blockade reimposed as of July 14, plus a proposed 20% fee on all cargo transiting the world's most critical energy chokepoint, the logistics picture for steel moving to or from the Gulf has changed materially since last week. Here is the full picture.

1. Domestic Steel Dynamics

China H1 Steel Exports Contract 5.6% Despite June's Year-on-Year Bounce

According to customs data, China exported 10.32 million tonnes of steel products in June - essentially flat month-on-month (down a marginal 0.19% from May) but up 6.6% compared to June 2025. However, the first-half cumulative picture tells a different story: China's total steel exports for January through June reached 54.87 million tonnes, down 5.6% year-on-year.

So far in 2026, Chinese steel products have already been subject to 17 anti-dumping and safeguard duties - compared with 12 anti-dumping cases for the entire year of 2025. Meanwhile, 17 more trade cases against Chinese steel are currently under investigation. The accelerating pace of trade remedy actions across six-plus markets is now visibly weighing on cumulative export volumes, even as individual months like June show year-on-year gains driven by front-loading and market-specific dynamics. For buyers assessing long-term supply security from Chinese-origin hot rolled, cold rolled and coated steel sources, the H1 contraction and accelerating anti-dumping timeline are the more strategically relevant signals.

Linggang Enters the High-End Automotive Steel Supply Chain

Linggang has reached a supply agreement with Baicheng Zhongyi Precision Forging - a leading Chinese manufacturer of automotive precision forgings - and successfully delivered its first batch of Q355B steel tailored specifically for automotive door hinges. The milestone marks Linggang's formal entry into the high-end automotive steel supply chain, and reflects the broader industry trend of Chinese mills upgrading from commodity-grade export products toward higher-specification, relationship-driven domestic supply contracts. This is also a direct response to the export market pressures described above: as tariff barriers multiply internationally, mills are deepening domestic high-value relationships as an alternative revenue stream.

Iron Ore Shipments Pull Back in the Week of July 6–12

Global iron ore shipments totalled 28.90 million tonnes in the week of July 6–12, down 6.59 million tonnes from the previous week. Arrivals at China's 47 major ports came in at 23.78 million tonnes, a week-on-week drop of 2.10 million tonnes. A single week's data shouldn't be over-read, but the pullback in iron ore flows is consistent with the broader picture of softer Chinese steel production momentum and sluggish downstream demand heading into the summer period. Lower iron ore arrivals can be a leading indicator of upcoming hot rolled and structural steel output adjustments in the weeks ahead.

2. International Market & Policy Highlights

US-Iran Ceasefire Collapses - Iranian Blockade Reimposed, 20% Hormuz Fee Announced

The most significant development for global commodity and steel shipping this week happened on July 13. Trump declared that the US would reimpose its blockade of Iranian ports near the Strait of Hormuz, effective July 14 at 4 p.m. At the same time, Trump announced that the United States would begin charging commercial vessels for protection through the strait, declaring that the US would be reimbursed "at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World.

The background is critical for understanding the stakes: the Strait of Hormuz, which saw 20% of the world's oil trade before being choked off at the start of the war in late February, facilitates the transit of around 20 million barrels of oil per day. The US-Iran ceasefire memorandum signed on June 17 - which had briefly resumed tanker flows and calmed freight markets - has now effectively been declared void, with both sides exchanging new strikes.

The legal situation around the 20% fee remains contested. The International Maritime Organization said there is no legal basis for mandatory tolls in the Strait of Hormuz, stating: "IMO stands firmly against charging fees for passage through straits used for international navigation. There is no legal basis through which to introduce mandatory tolls simply to transit through a strait."

For steel buyers and exporters with exposure to Gulf markets, the practical implications are immediate. Shipping firms may reroute via Saudi Arabia's Red Sea ports, African cape routes, or the UAE's eastern ports to avoid potential fees. The UAE is expanding eastern ports in Dibba, Fujairah, and Khor Fakkan to reduce its dependence on the strait. Whether the 20% fee is ultimately imposed or legally sustained, the uncertainty alone is enough to drive up insurance premiums, extend lead times, and raise logistics costs for steel pipes, structural profiles, HRC and other products destined for the Gulf construction and energy sectors. Any buyer with open orders for Middle East delivery should review their logistics arrangements this week.

OPEC Trims 2026 Oil Demand Growth Forecast - Sees Stabilising Fundamentals

OPEC released its July 2026 Monthly Oil Market Report on July 13, slightly lowering the 2026 global oil demand growth forecast to 0.8 million barrels per day. OECD countries account for approximately 40,000 bpd of incremental demand, with the bulk of new consumption still coming from non-OECD economies. The report noted that oil prices fell noticeably in June, driven by expectations of easing Middle East tensions and an improved supply outlook - though OPEC assessed that global crude market fundamentals remain broadly stable. OPEC maintained its 2026 global economic growth forecast at 3.1% and 2027 at 3.2%. The slight downward revision in oil demand is a modest negative signal for steel-intensive energy infrastructure projects, though the 3.1% GDP growth outlook remains supportive of broader industrial demand.

Vietnam's $3.1 Billion Green Steel Complex - ESG Becomes a Location Decision Factor

IMG Phuoc Dong has signed a memorandum of understanding with Germany's VFT Bio Fuels UG to jointly develop a green steel complex in Vietnam. The project is located in Tay Ninh Province's Tan Linh Industrial Zone, covering 250 hectares with a total investment of USD 3.1 billion and a designed annual capacity of 11 million tonnes of steel, targeting supply to both the Vietnamese domestic market and European export markets.

Two aspects of this deal are worth noting beyond the headline investment figure. First, a European company is specifically choosing Vietnam as the location for a green steel facility that will supply Europe - reflecting the EU's new sustainability and "melt-and-pour" traceability requirements under its steel safeguard regime as a competitive opportunity rather than a barrier. Second, as background context: Vietnam's total registered foreign direct investment in the first half of 2026 reached USD 34.65 billion, up 61% year-on-year - nearly matching the full-year FDI total for 2025. Vietnam is emerging as a key alternative manufacturing hub for steel-intensive industries looking to reduce exposure to the anti-dumping actions now targeting Chinese-origin products across multiple markets.

What This Week Means for Buyers

The Hormuz situation deserves immediate attention from anyone with steel shipments moving through or into the Persian Gulf. Regardless of whether the 20% fee is ultimately enforceable - and legal experts and the IMO have serious doubts - the reimposition of the Iranian blockade and the collapse of the June ceasefire have already tightened insurance markets and injected fresh uncertainty into Gulf transit timelines. Buyers routing steel coils, pipe and structural materials to Gulf construction or energy project sites should be in contact with their freight forwarders now.

At the same time, the H1 export contraction data confirms what the pace of anti-dumping actions has been telegraphing for weeks: Chinese-origin steel exports are structurally under pressure from multiple directions simultaneously - demand-side (domestic construction slowdown), supply-side (production cutbacks), and trade-remedy-side (17 duties in H1 2026 alone, with 17 more under investigation). For buyers who have relied heavily on Chinese-origin material for price leverage, building alternative supplier relationships is no longer an optional medium-term initiative.

For the complete weekly breakdown - China domestic spot and futures prices, FOB export quotes for HRC, CRC, HDG and coated products, iron ore and coking coal benchmarks, freight indices, and the full trade remedy case tracker - download Promisteel's Weekly Steel Industry Report (Jul 7–13, 2026), our comprehensive data briefing covering every major market variable in a single document.

At Promisteel, we monitor geopolitical and logistics developments in real time alongside market pricing, so our customers can make sourcing decisions with the full picture. Whether the Hormuz situation adds days to your delivery window or pushes freight costs higher, we work with you to identify the right logistics routing, product specification, and lead-time planning to keep your supply chain on track.

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We publish weekly market updates to keep your sourcing decisions grounded in current data. If you need a quote or want to discuss how this week's Hormuz re-escalation affects your next order, reach out directly - our team responds quickly with professional, data-backed guidance.