China is preparing to roll out a licensing regime for steel exports, in what appears to be an effort to rein in record volumes of the metal flowing out of the country, raising hope of an easing global oversupply, supporting prices.
Exporters will have to seek permission to ship out a range of steel products starting from January 1, the Chinese government said in a statement. The announcement from the ministry of commerce did not give any reason for the new regulations, but the move comes at the end of a record year for China’s steel exports, which has fuelled trade tensions and depressed prices across economies unprotected by tariffs, such as India.
According to the World Steel Association, China exported 117.1 million tonnes of steel in 2024. To put it in perspective, India’s steel production — the second highest in the world — in the same year was 149.4 mt.
Permits for China’s steel exports are not new, but this plan is likely to significantly expand the scope of products covered. The ministry included a list of some 300 specific products that will require the paperwork, including types used in industries as diverse as car-making, construction or consumer goods.
