Chinese market participants have become unsure about the impact of the recently announced export licensing system introduced by the Chinese Ministry of Commerce and the General Administration of Customs of the People's Republic of China (GACC).
In a joint statement released on December 12, the two organizations announced that export licensing of steel exports would resume on January 1 after a 16-year hiatus. Exporters will have to obtain permission to supply steel under the new measures, which cover 300 types of products, including carbon and stainless materials.
Some European Parliament respondents suggested that the introduction of licensing could limit exports in 2026, putting additional downward pressure on domestic prices. MEPs China's hot-rolled coil price, which excludes VAT, decreased by 9.3% in 2025, to CNY2.956 per ton, rebar prices decreased by 9.8% in CNY2.785 per ton.
moving away from volume by price’
Speaking on December 12, China's new licensing regime was announced, Leiming Chen, executive chairman and secretary general of the China Metal Materials Association, said that the "volume for price" export model increases energy consumption, carbon dioxide emissions and trade dispute risks. The average price of steel exported from China decreased by 10.2% year-on-year during the first six months of 2025, falling to USD699 per ton (CNY5.030 per ton).
However, the original announcement of the new licensing regime did not explicitly mention restrictions on steel in China's export volumes. It is more likely that licensing will be used to tighten VAT collection rules in China. It can also allow customs authorities to track the prices of exported steel products, helping to track the industry's transition from trademark production to value-added materials production.
- This article was first published in the December issue.
International Steel Review of MEPs. The monthly report provides subscribers with information on steel prices, indexes, market commentary, and forecasts from key global steel markets in North America, Europe, and Asia. Contact the members of the European Parliament for detailed information on how to sign up.
The main article of the International Steel Review last month drew attention to the Chinese government's new work plan for ensuring stable growth of the steel industry for 2025-2026, which aims for annual value-added growth of 4% per year. 2025-26.
According to data released by the GACC, steel exports from China continued to grow in November. Exports of finished steel products in the first 11 months of this year reached
