context: New export licensing on PRC steel products was announced from 1 January 2026, covering around 300 customs product codes. This marks the first reinstatement of steel export licence management in 16 years since its removal in 2009. Weakening external demand, rising trade restrictions against PRC steel and growing price-cutting competition are prompting Beijing to regulate exports in this area.
Chen Leiming 陈雷鸣 China National Association of Metal Material Trade vice president and secretary general shares his insights on PRC steel export licensing
- policy objectives
- guide industrial upgrading of the steel sector
- prioritise domestic demand for steel products
- coordinate external participation in global supply chains
- maintain orderly export competition
- maintain global steel supply–demand balance and trade equilibrium
- export volume shows structural imbalances
- steel exports show falling prices with a surge in low-value-added primary products
- this volume-driven export model increases energy use and carbon emissions
- heightens the risk of trade frictions abroad
- runs counter to the PRC steel sector’s long-term high-quality development goals
- sharp rise in steel billet exports alongside falling prices in H1 2025 shows some firms are stuck in low-end price competition
- trade frictions
- since 2024, the PRC steel sector has faced over 50 anti-dumping cases
- Vietnam, India, Korea and Indonesia have imposed anti-dumping duties on PRC products
- e.g. hot-rolled coil and heavy plate
- Vietnam, India, Korea and Indonesia have imposed anti-dumping duties on PRC products
- since 2024, the PRC steel sector has faced over 50 anti-dumping cases
- expected effects of this policy
- in Sep 2025 PRC issued the steel industry steady growth work plan 2025–26
- calling for stronger steel export management, orderly export competition and an optimised export product structure
- this announcement is a step to implement these requirements
- respond to the challenges currently facing the steel sector
- raise compliance costs for low-value-added steel exports
- forces firms to adjust their product structure
- push firms to shift product structure away from price competition
- guide firms to expand to emerging markets in Africa and Latin America
- in Sep 2025 PRC issued the steel industry steady growth work plan 2025–26
- suggestions
- firms to review the controlled product catalogue
- prepare contracts and quality inspection certificates
- firms are encouraged to increase R&D spending
- shift toward high-end products
- e.g. bearing steel, gear steel and high-temperature alloys
- shift toward high-end products
- leading firms have begun exporting green steel products
- through full life-cycle carbon accounting and EPD certification
- achieving around 50 percent carbon reduction per tonne
- this transformation is worth emulating
- firms to review the controlled product catalogue