China will reintroduce steel export licensing from Jan. 1, 2026, requiring permits for 300 products across the steel supply chain, spanning raw materials to finished goods, the Ministry of Commerce and the General Administration of Customs announced on Dec. 12.

The move comes 16 years after China abolished steel export licensing and is aimed at standardizing exports, promoting high-quality development in the steel industry, maintaining global supply-demand balance, and ensuring trade stability, according to the China Iron and Steel Association (CISA).

"Stricter export control is necessary to guide domestic industry upgrades, integrate into global supply chains, manage trade flows, streamline channels, and align domestic and international markets," the CISA said. "It will also support the transformation of China's steel sector."

China exported nearly 108 million tons of steel in the first 11 months of 2025, up 6.7% year-on-year, according to General Administration of Customs (GAC) data. Full-year exports are expected to reach a record 115 million tons.

However, rising export volumes have coincided with falling overseas prices, driven by a surge in low-value-added products. The average price of Chinese steel exports in the first half of 2025 was USD 699 per ton, down more than 10% from a year earlier, the data showed.

Industry observers say the reintroduction of licensing may help curb low-value shipments, stabilize prices, and encourage Chinese producers to focus on higher-quality, higher-value steel products as the country seeks to balance global trade interests with domestic industry upgrades.