On December 12th, the Ministry of Commerce and the General Administration of Customs jointly issued Announcement No. 79, deciding to implement export license management for certain steel products starting from January 1, 2026. This is the first time that China has implemented such a system since it abolished the steel export license management system in 2009, 16 years ago. In response to this policy, Chen Leiming, the executive president and secretary-general of the China Metal Materials Distribution Association, immediately accepted an interview with the China Metallurgy News and provided an interpretation of the policy.
China Metallurgy News reporter: Why implement the export license management system again after 16 years?
Chen Leiming: This is a necessary move to address the multiple challenges currently faced by China's steel industry.
Data shows that in the first 11 months of this year, China's steel exports reached 107.7 million tons, an increase of 6.7% year-on-year. The annual total is expected to exceed the historical peak of 112 million tons in 2015. However, behind the record-breaking figure lies structural contradictions. In the first half of this year, China's steel exports reached 58.15 million tons, an increase of 9.2%. exit
The average price was $699.3 per ton, down 10.3% year-on-year; the export value reached $40.66 billion, down 2%. Meanwhile, the export volume of low value-added primary products soared. In the first half of this year, China exported 5.89 million tons of steel billets, three times that of the same period last year, but the average export price dropped by 15.3%. More seriously, the number of trade friction cases suffered by China's steel industry has significantly increased. Since 2024, China's steel industry has faced over 50 anti-dumping cases. This "exporting by quantity to compensate for price" model not only increases energy consumption and carbon emissions, but also easily triggers more international trade frictions.
In fact, the 79th announcement is not an isolated policy; it is highly connected with a series of recent steel industry policies. The "Steel Industry Stabilization and Growth Work Plan (2025-2026)" issued in September clearly states that it is necessary to strengthen the management of steel product exports, maintain the export competition order, and optimize the structure of steel exports. The 79th announcement is precisely the specific measure to implement this requirement. The 79th announcement also states, "For other matters not covered herein, they shall be implemented in accordance with the announcement of the Ministry of Commerce and the General Administration of Customs No. 65 of 2024," ensuring the continuity and stability of the policy.
Reporter from China Iron and Steel News: Which steel products will be subject to key control?
Chen Leiming: According to the 79th announcement, the steel products subject to export license management involve 300 customs commodity numbers, covering the entire industrial chain from raw materials to finished products. From the specific categories, there are raw materials and primary products, including non-alloy pig iron, recycled steel raw materials, steel powder, etc.; intermediate products, including rectangular section steel billets, continuous casting slab billets, etc.; and finished products, including hot rolled coil, cold rolled coil, coated products, etc.
It is worth noting that the license application procedure clearly requires that foreign trade operators apply for the license based on the goods export contract and the quality inspection certificate issued by the manufacturer. This regulation takes product quality inspection as a prerequisite for export, which helps to improve the quality and reputation of Chinese steel products from the source.
Reporter from China Iron and Steel News: How does the new policy affect the steel industry? What should steel enterprises do?
Chen Leiming: This policy has a positive significance for the long-term development of the steel industry.
First, it is conducive to curbing the disorderly export of low value-added products. The phenomenon of a sharp increase in steel billet exports but a price decline in the first half of this year reflects that some enterprises are still at the primary stage of price competition. Through the implementation of the export license management system, the compliance cost for the export of low value-added products will increase, thereby forcing enterprises to adjust their product structure.
Second, it helps enterprises cope with international trade barriers. This policy can guide enterprises to optimize the layout of export markets, reduce reliance on traditional markets that have implemented high anti-dumping taxes, and expand emerging markets in Africa, Latin America, etc.
Third, it helps promote enterprises to accelerate green transformation. This year is the first year that the steel industry has been included in the national carbon market, and it is also the critical transition period before the EU officially levies carbon tariffs under the Carbon Border Adjustment Mechanism (CBAM). This policy will help enterprises accelerate green transformation.
For steel enterprises, they must actively adapt to and implement the new policy. First, they should promptly understand the specific product directory included in the management and prepare the export contract and quality inspection certificate and other application materials in advance. Secondly, they should increase research and development investment to develop high-end and green steel products. Finally, they should establish a complete quality management system. The requirements for license application include providing a quality inspection certificate. This is not only a compliance requirement, but also the foundation for improving product competitiveness and brand value.
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