President Suhel Motiwala says higher war-risk insurance, rerouting pressure and tighter shipment planning are increasing pressure on exporters serving India, China, Malaysia and South Korea
Dubai, United Arab Emirates — April 2, 2026 — MET ASIA GROUP, a Dubai-based international trading group focused on non-ferrous metals scrap, metal recycling solutions and global sourcing, today issued a market statement on the growing pressure facing non-ferrous scrap supply chains moving from the Middle East, GCC and connected origin regions into key Asian demand markets including India, China, Malaysia and South Korea.
According to MET ASIA GROUP, the current market challenge is no longer limited to material availability or headline pricing. The more important issue is whether cargo can move with predictable timing, commercially manageable freight exposure, acceptable insurance cost and reliable delivery planning. Reuters reported on March 6, 2026 that maritime war-risk insurance premiums linked to the Gulf conflict rose in some cases from around 0.25% to as high as 3% of vessel value, while some insurers also reduced or withdrew cover for certain voyages.
The company said these developments are especially relevant for exporters, processors, yards and trading counterparties handling copper scrap, aluminium scrap, brass scrap and mixed non-ferrous scrap from the Middle East and connected supply regions. In MET ASIA GROUP’s market view, the pressure begins at the yard and export stage, where higher insurance cost, uncertain shipment planning, longer route assumptions and increased working-capital exposure can change the commercial structure of a transaction before cargo reaches its final destination.
Shipping patterns have also become more complex in the current scenario. Reuters reported on March 1, 2026 that Maersk, Hapag-Lloyd and CMA CGM were rerouting vessels around Africa, away from the Suez Canal and the Bab el-Mandeb Strait, following the escalation that began after February 28, 2026. Reuters also reported on March 30, 2026 that these rerouting patterns were continuing, with major carriers still diverting around the Cape of Good Hope, increasing route length and freight exposure.
Separately, Reuters reported on March 28, 2026 that Maersk temporarily halted operations at Oman’s Port of Salalah following a security incident. Reuters said Maersk expected operations to be suspended for around 48 hours and that its crew and cargo were safe.
Reuters also reported on April 1, 2026 that the U.S. Gulf Coast tanker market tightened sharply as Asian buyers sought replacement supply amid disruption to Middle Eastern flows. That report noted a steep reduction in vessel availability and a sharp jump in freight earnings, reinforcing the wider market view that shipping disruption is increasing transport-cost pressure across commodity trade.
For the non-ferrous scrap trade, MET ASIA GROUP believes this environment is translating into more cautious booking decisions, tighter delivery planning and stronger buyer scrutiny on timing, route exposure and landed cost. The company added that exporters are now navigating a more execution-sensitive market where route clarity, cargo discipline and commercially realistic shipment planning are becoming more important than ever.
The group said the impact is especially visible in destination markets that rely on consistent imported scrap supply.
India is expected to remain focused on landed-cost control, shipment timing and supply continuity as freight and insurance conditions remain volatile.
China is likely to continue favoring commercially secure cargoes with clear specifications, dependable loading plans and stronger execution discipline.
Malaysia may strengthen its role as a flexible regional intake and processing market when buyers prefer shorter-haul or lower-risk routing options.
South Korea is expected to remain highly selective, with continued emphasis on documentation quality, cargo consistency and realistic delivery schedules.
“The market often sees the destination-side effect first, but a significant part of the pressure starts much earlier at the yard and export stage,” said Suhel Motiwala, President of MET ASIA GROUP. “When insurance costs rise, routing becomes longer, and shipment planning becomes less predictable, the trade changes before the cargo even reaches India, China, Malaysia or South Korea.”
“In the current environment, serious buyers are looking beyond price alone,” Motiwala added. “They want route clarity, supply continuity, disciplined execution and counterparties who understand both market opportunity and trade risk. This is where strong, well-structured suppliers and trading groups will stand apart.”
MET ASIA GROUP said the current market is placing greater value on origin diversification, route-risk awareness, freight planning, stronger transaction discipline and commercially realistic execution. In the company’s view, regional and intra-Asia sourcing routes may gain relative attractiveness where buyers seek lower uncertainty and more controllable delivery profiles, while cargo moving through more exposed corridors may face closer review on price viability, timing assurance and risk-adjusted margins.
As global shipping and commodity trade conditions continue to evolve, MET ASIA GROUP said it remains focused on supporting industrial buyers, recyclers, processors and international trade counterparties with practical market interpretation, disciplined sourcing strategy and execution-focused supply solutions across the non-ferrous metals value chain.
About MET ASIA GROUP
MET ASIA GROUP is a Dubai-based international trading group focused on non-ferrous metals scrap, metal recycling solutions and global sourcing. The company supports strategic supply and demand markets through commercially structured, execution-focused trade solutions across the international metals sector.
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MET ASIA GROUP
Dubai, United Arab Emirates
Contact Person: Edward Sinchlair
Email: media@metasia.ae
