The world’s largest steel producer, China, plans to roll out a licence system from 2026 to regulate exports of the metal, as robust shipments have fuelled a growing protectionist backlash worldwide.
Exporters of some 300 steel items will have to apply for licences on the basis of export contracts and product quality inspection certificates from manufacturers, the commerce ministry said on Friday.
“Some steel products will be added into the list of cargoes under export licence management effective from January 1, 2026,” it added in a statement.
The news followed market talk the previous day that Beijing could be planning such a move.
A list of 43 categories of goods subject to export licences in 2025 included wheat, corn, coal and crude oil, the ministry said late in 2024.
“The move will help maintain a balance of global supply, demand and trades,” the state-backed China Iron and Steel Association said in a statement on its WeChat account.
Some analysts downplayed the potential impact on steel exports in the short term, saying it was not hard to secure the necessary licence.
“While the near-term impact is limited, the move lays foundations for potentially more stringent regulation in the future,” said a Shanghai-based analyst who sought anonymity, as he was not authorised to speak to media.
China’s steel exports have been surprisingly resilient since 2023. Outbound shipments in the first 11 months of 2025 jumped 6.7 per cent year-on-year to 107.72 million metric tons, keeping the annual total on track to hit a record high.
Robust steel exports have helped to partly offset faltering domestic demand dragged down by a protracted property market downturn.
But rising product outflows have also prompted countries to throw up more trade barriers on grounds that the flood of cheap products is hurting domestic manufacturers.
Ballooning exports of some semi-finished steel products such as steel billet with lower added value sparked criticism from market participants and associations, which called them a waste of valuable resources, such as iron ore.
