Chinese metal exports head for record on Middle East war demand
Updated
Updated · Bloomberg · May 6
Chinese metal exports head for record on Middle East war demand
12 articles · Updated · Bloomberg · May 6
Aluminum product shipments from the world's biggest manufacturing hub are forecast by China's top industry association to reach an all-time high this year.
The conflict has reduced regional supply while higher fossil-fuel prices are lifting demand for clean-tech goods, strengthening overseas orders for Chinese metals.
Copper could also gain because it is widely used in batteries and other clean-energy products, extending the export boost beyond aluminum.
With Mideast supply chains disrupted, are record-high metal prices the new cost of a green transition?
Does the clean energy revolution depend on China's carbon-intensive metal production to succeed?
As the US builds new alliances, can it break its critical metal dependency on rival suppliers?
2026 Strait of Hormuz Shutdown: Impact on Chinese Steel Exports, Aluminum Surge, and Economic Slowdown
Overview
In early 2026, Iran's closure of the Strait of Hormuz severely disrupted global trade, especially impacting China's steel exports which fell nearly 10% due to halted shipments to the Middle East. This shutdown caused logistical chaos, forcing costly rerouting and soaring insurance premiums, while attacks on Iranian steel plants further tightened global supply and pushed steel prices into volatility. Meanwhile, aluminum exports from China surged as buyers redirected orders amid Middle East supply shortages, supported by increased domestic production fueled by diverted alumina imports. However, rising energy costs and global demand uncertainty strained manufacturing and slowed China's overall export growth. In response, China accelerated overland trade routes and diplomatic efforts, signaling a strategic shift in supply chains and long-term economic realignments.