Gulf steel accelerates green shift amid global supply chain revamp

The Gulf region’s steel industry is entering a transformative phase, driven by decarbonisation imperatives, infrastructure demand, and strategic integration of mining and manufacturing value chains.

- Somshankar Bandyopadhyay

As global iron ore flows and pricing trends evolve, regional producers are leveraging technology, renewable energy, and backward integration to position themselves as leaders in low-carbon steel.

Global seaborne iron ore loadings reached 1.247 billion metric tonnes in 2025, virtually flat year-on-year, with Australia and Brazil supplying nearly 78 per cent of global volumes. China remains the dominant importer, accounting for 74 per cent of receipts. This concentration underscores the strategic need for Gulf producers to diversify sourcing and secure raw materials amid volatility driven by carbon-adjusted costs and trade measures like the EU’s Carbon Border Adjustment Mechanism (CBAM).

Global outlook

The global iron ore market is projected to grow from $290 billion in 2024 to $397 billion by 2032, reflecting a 4 per cent CAGR, but price swings will persist.