China’s Ministry of Commerce will introduce a new steel export licensing system starting January 1, 2026, requiring permits for most steel products in an effort to manage surging shipments and address global oversupply. The move follows a year of exceptionally strong Chinese steel exports.
The licensing list spans nearly the entire steel value chain, covering pig iron, ferro-alloys, iron and steel powders, scrap, semi-finished steel, a broad range of flat products (including hot-rolled, cold-rolled, coated), long products such as bars, wire rod, rebar, and sections, stainless steel, as well as pipes, tubes, fittings, and various fabricated steel components.
Some Chinese steel traders expect limited short-term impact on export volumes but noted that the policy may restrict non-VAT steel exports.
China’s robust exports have helped offset weak domestic demand, but the rise in overseas shipments has also triggered protectionist measures from several major trading partners seeking to shield their local industries.
According to China’s General Administration of Customs, steel exports reached 9.98 mln tons in November, up 7.5pct YoY and 2pct month-on-month. With January-November shipments totaling 107.7 mln tons, exports are on track to exceed the all-time record of 112.4 mln tons set in 2015.
