After 16 Years, China Restarts Export License Management for Steel Products

For steel exporters, this policy change is not merely administrative. It represents a structural adjustment involving compliance, product strategy, and long-term international competitiveness.

1. Nearly 300 Steel Products Now Under Export License Control

On December 12, 2025, China’s Ministry of Commerce (MOFCOM) and the General Administration of Customs jointly issued Announcement No. 79, confirming that export licenses will be required for certain steel products starting in 2026.

The scope of control is extensive, covering nearly 300 HS codes across the entire steel industry chain:

• Upstream products: billets, pig iron
• Midstream products: hot-rolled coils, cold-rolled sheets, medium and thick plates
• Downstream products: steel pipes, sections, and selected steel articles

Among them, 127 items are classified as high energy-consuming products, accounting for over 42% of the total. This clearly reflects the government’s intention to curb low value-added exports and accelerate green and high-end industrial upgrading.

Exporter reminder: Companies should immediately review their HS codes to confirm whether their products fall under the new license list.

2. Why Is China Reintroducing Export Licenses for Steel?

2.1 Growing Volume, Falling Prices

According to customs data:

• Steel exports (Jan–Nov 2025): 107.7 million tons, up 6.7% YoY
• Average export price (H1 2025): USD 699.3/ton, down 10.3% YoY
• Total export value: down approximately 2% YoY

Despite rising export volumes, declining prices have significantly compressed profit margins across the industry.

2.2 Increasing Anti-Dumping Pressure

Since 2024, China’s steel industry has faced more than 50 anti-dumping and countervailing investigations. In some markets, anti-dumping duties on Chinese steel products such as hot-rolled coils and plates have reached as high as 38%.

The traditional low-price export model is becoming increasingly unsustainable amid rising global trade protectionism.

2.3 Carbon Border Taxes and Green Trade Barriers

As one of the largest carbon-emitting industries, steel manufacturing is directly affected by emerging regulations such as the EU Carbon Border Adjustment Mechanism (CBAM) and ESG compliance requirements from global buyers.

Export license management also serves as a policy tool to screen and guide exporters toward greener and more compliant production.

3. Key Objectives Behind the New Policy

• Stabilize domestic supply: Ensure sufficient steel supply for China’s manufacturing sector and key infrastructure projects.
• Promote industrial upgrading: Increase compliance costs for low-end products and encourage a shift toward high-performance steel, special alloys, and advanced materials.
• Respond to global trade changes: Reduce reliance on high-risk markets and build a “quality-over-quantity” image for Chinese steel exports.

4. What Is an Export License?

An export license is a legally binding document issued by authorized authorities under MOFCOM, permitting the export of regulated goods.

Different trade modes require different regulatory codes:

• General trade: Code 4
• Processing trade: Code X
• Border small trade: Code Y

Important: The license information must exactly match the trade mode declared to customs, or clearance delays may occur.

5. How to Apply for a Steel Export License (Practical Guide)

1. Apply for a CA digital certificate
   Required for logging into MOFCOM’s online licensing system.
2. Log in to MOFCOM Unified Platform
   Website: https://ecomp.mofcom.gov.cn/
3. Submit the license application
   Core documents include:
   • Export contract
   • Product quality inspection certificate issued by the manufacturer
4. Authority review
   Central SOEs are reviewed by MOFCOM; other enterprises by provincial or sub-provincial authorities.
5. License issuance and customs linkage
   Approved licenses are issued electronically and transmitted directly to customs systems for declaration.

6. Goodship56 Compliance Advisory

With the policy implementation just around the corner, exporters are advised to:

• Verify whether exported steel products fall under license control
• Prepare contracts and inspection documents in advance
• Adjust export product mix toward higher value-added items
• Coordinate early with freight forwarders and customs brokers

Conclusion: From Scale-Driven to Quality-Driven Exports

China’s steel industry is transitioning from volume-based growth to quality-focused development. The reintroduction of export license management is both a constraint and a filter.

In the future, only exporters with strong compliance capabilities, optimized product structures, and sustainable production practices will remain competitive in global steel trade.

Goodship56 will continue to monitor policy updates and provide exporters with professional logistics and trade compliance support.