China’s Steel Export Licensing May Be Easing Excessive Price Competition

China introduced export licence requirements for a broad range of steel products from January 1, 2026. Exporters are required to provide supporting documents, including export contracts and product quality certification, allowing authorities to monitor steel shipments more closely and improve export traceability. The measure does not impose a direct export quota, but it raises the compliance threshold for steel exports and may help reduce irregular or excessively low-priced shipments.

Recent steel prices have remained relatively stable during the traditionally slower season, without either a sharp decline or an aggressive upward rally. The licensing system may be one factor helping to reduce disorderly price competition, although production controls, raw material costs, domestic demand and market sentiment also continue to influence pricing. For overseas buyers, a more orderly export market may provide greater quotation consistency, but specifications, supplier reliability, delivery schedules and total shipment costs should still be evaluated carefully. China has also stated that it will continue controlling crude steel output and prohibit illegal new capacity during the 2026–2030 period.