China’s Ministry of Commerce (MOFCOM) and the General Administration of Customs (GACC) jointly announced a new export licensing system for approximately 300 steel products, effective January 1, 2026.
The measure requires foreign trade operators to obtain a license for covered steel products, which include flat and long rolled products, pipes, and stainless steel, by submitting an export contract and a manufacturer-issued quality inspection certificate.
Key highlights
• Scope: The system covers a wide range of products across around 300 customs commodity codes, including pig iron, scrap, billets, hot-rolled and cold-rolled plates, rebar, wire rods, and stainless steel.
• Reasoning: The move comes amid record-high Chinese steel exports in 2025, which have helped offset weak domestic demand but have also fueled international trade tensions and a “protectionist backlash” due to an influx of cheap products into global markets.
• Objective: According to the China Iron and Steel Association (CISA), the policy aims to standardize exports, promote high-quality development in the industry, and help balance global supply and demand.
• Impact: While some analysts suggest the short-term impact may be limited as licenses are reportedly not difficult to obtain, the new rules create an administrative mechanism for controlling supplies and could potentially lead to more stringent regulations in the future. The announcement caused immediate volatility, with some exporters temporarily halting quotes.
More information could be found from the official homepage of MOFCOM:
https://www.mofcom.gov.cn/zcfb/blgg/art/2025/art_62805d75dd4646c8912cd32c2ecf6b4d.html