Steel imports to Europe are facing longer delivery times and higher costs as the conflict in the Middle East disrupts shipping routes and energy markets, according to market sources. While the full impact remains uncertain, the EU steel market is closely monitoring developments and avoiding significant purchases.

European buyers expect shipments that previously passed through the Suez Canal to be rerouted via the Cape of Good Hope, increasing freight costs and extending lead times. Some vessels have already used the alternative route. Market participants estimate that deliveries from Asia and the Middle East could take an additional two to four weeks. Traders also reported difficulties in booking orders due to uncertainties over prices and delivery schedules.

Delivery delays are critical as the EU plans to tighten steel import quotas from July 2026, including a proposed 47% reduction in volumes and duties rising to 50%. Higher freight and energy costs are also expected to push up import and domestic steel prices. Meanwhile, rising energy costs could increase production costs, while geopolitical uncertainty may weigh on steel demand in Europe.