[SMM Steel] Shipping Shipwreck and Tightened Sanctions Paralyze Iranian Semi-Finished Exports

Published: Jul 16, 2026 16:03

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[Iran] Strangled by escalating geopolitical tensions, the de facto closure of the Strait of Hormuz, and new US naval activity implemented since July 14, the Iranian semi-finished import/export market has seen muted trading activity this week. Crucially, a bulk carrier laden with 43,000 tonnes of steel billets collided and sank in the Strait of Hormuz, heightening maritime uncertainty and causing numerous vessels to back up at anchorages or cancel shipments entirely, leaving seaborne export tenders fully suspended. While some mills attempted to float offers at 410–415 USD/tonne FOB, international buyers have largely retreated from the market, leaving only isolated cross-border road deliveries of billets to the Afghan border. Meanwhile, driven by tight internal supply, domestic billet prices spiked to 423 USD/tonne, causing a severe inversion between domestic and export prices. Overall, the closure of shipping routes and the cutoff of import channels due to the new US lockdown are forcing Iranian steel mills to shift their limited resources entirely to the domestic market, leaving international semi-finished trade flows facing severe and prolonged disruptions in the short term.

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