China's New Steel Export License Policy 2026: Announcement No. 79 Interpretation For B2B Buyers

 

The 2026 China Steel Export License Policy introduces new compliance requirements that may directly affect steel pricing, lead times, and supplier eligibility. This policy is not just a regulatory adjustment but a strategic move to align China's steel exports with global trade rules and low-carbon trends.

 

For international buyers sourcing fasteners, bolts, nuts, or steel-based components, understanding how this policy impacts your supply chain is now critical.

 

This article provides a comprehensive breakdown of the policy, from core changes to practical implications for global trade.

 

 

 

Issuing Bodies: Ministry of Commerce (MOFCOM) and General Administration of Customs(GAC) of the People's Republic of China.

 

Timelines: The policy was issued on December 9, 2025, and officially takes effect on January 1, 2026. Matters not covered shall follow MOFCOM & GAC Announcement No.65/2024.

 

Legal Basis: The policy is formulated in accordance with the Foreign Trade Law of the People's Republic of China, the Regulations of the People's Republic of China on the Administration of the Import and Export of Goods, and the Measures for the Administration of Goods Export Licenses.

 

 

The policy targets three critical industry challenges to promote high-quality and sustainable export development:

 

• Mitigate global trade frictions: Respond to rising anti-dumping investigations (over 50 cases against Chinese steel products since 2024) and adapt to international mechanisms like the EU Carbon Border Adjustment Mechanism (CBAM).
• Optimize export product structure: Reduce reliance on low-value-added, high-energy-consuming products (accounting for over 40% of previous exports) and shift towards high-value-added, low-carbon steel.
• Regulate market competition: Crack down on illegal practices such as export under another company's name and and low-price dumping, which disrupt both domestic and international markets.

 

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Controlled Product Scope: 268 Steel Items Under Licensing

 

The policy revises the 2025 Catalogue of Goods Subject to Export License Administration, adding 268 steel products (covered by specific customs commodity codes) to the licensed management list. The controlled scope spans the entire steel industrial chain:

 

• Raw materials and primary products (25 in total): Core varieties include non-alloy pig iron, direct reduced iron, steel billets, etc.
• Hot-rolled products (24 in total): Core varieties include hot-rolled coils, pickled coils, etc.
• Cold-rolled and coated products (18 in total): Core varieties include cold-rolled coils, galvanized sheets, etc.
• Long products and others (20 in total): Core varieties include H-beams, seamless steel tubes, etc.

 

A complete list of controlled products is available in the annex of MOFCOM & GAC Announcement No.79/2025, enabling enterprises to cross-verify their product categories against customs codes.

 

Exempted Products: Terminal Consumer Goods

 

A key highlight of the policy is the exemption of terminal consumer goods from licensing requirements, which include:

 

• Fasteners and precision mechanical components.
• Automotive parts (seat frames, impact beams, chassis tubes, etc.).
• Home appliances and bathroom accessories.

 

This exemption acknowledges the high added value and compliance standards of terminal products, focusing regulatory efforts on upstream raw materials and low-end industrial steel that face greater trade friction risks.

 

 

Mandatory Application Materials

 

Enterprises exporting controlled steel products must submit two core documents to apply for an export license:

• A valid original export contract to prove the authenticity of the trade transaction.
• A product quality inspection certificate issued by the manufacturer, stamped with an official seal and specifying product specifications, quality standards, and inspection results.

 

Issuing Authorities & Application Channels

 

License issuance follows a hierarchical management system:

• Central enterprises supervised by the State-owned Assets Supervision and Administration Commission (SASAC) in Beijing: Apply via the MOFCOM License Bureau.
• Other enterprises: Apply through local competent commercial departments (provincial-level or 8 sub-provincial cities, including Shenyang, Guangzhou, and Chengdu).

Applications can be submitted online through MOFCOM's official licensing platform, streamlining the process for enterprises.

 

Processing Time & License Management Modes

 

• Regular processing: 3-5 working days from the date of complete application submission.
• Expedited processing: 1-2 working days for urgent orders with reasonable justifications.
• Management modes: Licenses follow either "one order, one license" (for single transactions) or "multiple orders, one license" (for continuous small-batch exports), with clear validity periods to ensure trade flexibility.

 

 

China's Steel Export Trends (2024-2025 Data)

 

China's steel exports have experienced strong growth in recent years, making it a key global supply source. In 2024, exports reached 111 million tons, a year-on-year increase of 22.7%. From January to October 2025, cumulative exports hit 97.74 million tons, up 6.6% year-on-year, with full-year 2025 projections exceeding 115 million tons. This rapid growth, however, has been accompanied by structural imbalances:

 

• Over-reliance on low-value-added products leads to volume growth without price increases, squeezing profit margins.
• Illegal export under another company's name undermines fair competition, triggering anti-dumping investigations and damaging the reputation of Chinese steel products.

 

Rising Global Trade Frictions & EU CBAM Impact

 

Global trade barriers for steel products are tightening. The EU CBAM, which entered its transitional phase in October 2023, will formally impose carbon tariffs on steel imports from January 1, 2026. A recent CBAM draft further expands coverage to 180 downstream products (including auto parts and machinery), with China facing significantly higher "default emission values" due to its energy structure. For Chinese exporters, this means potential additional costs of up to 760 yuan per ton of steel if they fail to provide accurate carbon footprint data. The 2026 steel export policy aligns domestic regulation with these international trends, helping enterprises adapt to global carbon constraints.

 

 

Short-Term Impacts (2026 H1): Export Rhythm & Cost Changes

 

• Supply chain adjustments: Enterprises exporting controlled products may face short-term delivery delays as they adapt to license application processes. Exempted terminal products (e.g., auto parts) will maintain a stable supply.
• Cost fluctuations: Compliance costs for controlled product exports are expected to rise by 50-100 yuan per order, potentially leading to minor price increases for low-value-added steel in global markets.
• Market differentiation: Buyers sourcing raw steel (e.g., billets, hot-rolled coils) may need to adjust lead times, while those purchasing terminal products (e.g., precision auto parts) will experience minimal disruption.

 

Medium-Term Impacts (2026 H2 - 2027): Structural Optimization & Competition Pattern

 

• Market purification: Low-cost, low-quality suppliers relying on export under another company's name will be eliminated, reducing disorderly competition. High-compliance, high-quality enterprises will gain larger market shares.
• Product upgrading: Chinese steel exports will shift towards high-value-added, low-carbon products, aligning with global demand for green manufacturing.
• Trade relationship stabilization: Reduced low-price dumping will lower anti-dumping risks, fostering more predictable trade relations between China and key markets like the EU, North America, and Southeast Asia.

 

Long-Term Impacts (2028+): Green Transformation & Global Competitiveness

 

• Low-carbon transition: The policy will accelerate China's steel industry's ultra-low emission transformation, with 80% of production capacity expected to meet low-carbon standards by 2028. This will help Chinese steel products comply with EU CBAM and other global carbon regulations.
• Value chain upgrading: The focus on high-value-added products will drive innovation in downstream sectors like auto parts and machinery, enhancing China's position in the global steel value chain.
• Market diversification: Guided by the policy, Chinese exporters will expand into emerging markets in Africa, Latin America, and Central Asia, reducing reliance on traditional markets and creating new opportunities for B2B cooperation.

 

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For Overseas B2B Buyers: How to Ensure Stable Supply Chains

 

• Verify supplier qualifications: Confirm if your Chinese supplier has the necessary foreign trade operation rights and export license (for controlled products) to avoid order cancellations.
• Clarify product categories: Cross-check the customs code of your purchased products against the policy's controlled list to determine if licensing is required.
• Compliance clauses: Add policy compliance and carbon cost adjustment terms in contracts, especially for long-term orders, to mitigate risks from price fluctuations or regulatory changes.
• Communicate carbon data requirements: For EU-bound orders, discuss carbon footprint reporting with suppliers to avoid CBAM-related cost surcharges.

 

For Chinese Export Enterprises: Step-by-Step License Application Guide

 

• Classify products: Confirm if your products are on the controlled list using their customs commodity codes.
• Prepare materials: Gather the original export contract and manufacturer's quality inspection certificate (stamped with an official seal).
• Submit application: Apply through the designated authority (MOFCOM License Bureau or local commercial department) via the online platform.
• Track progress: Monitor application status through the platform and respond promptly to supplementary material requests.
• Manage licenses: Ensure licenses are valid for the export period and comply with "one order, one license" or "multiple orders, one license" requirements.

 

For Upstream & Downstream Partners: Supply Chain Compliance Tips

 

• Upstream suppliers: Provide authentic, detailed quality inspection certificates and low-carbon production data to support downstream exporters' license applications and CBAM compliance.
• Downstream manufacturers: Strengthen supplier audits, prioritizing partners with ultra-low emission qualifications and complete compliance systems.
• Logistics and freight forwarders: Familiarize yourself with license verification procedures to ensure smooth customs clearance for controlled products.

 

 

 

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The 2026 China Steel Export New Policy (MOFCOM Announcement No.79/2025) marks a critical shift towards quality-oriented, compliant, and low-carbon exports. While it introduces new requirements for controlled product exports, it also creates a fairer, more predictable market environment for global B2B trade.

 

For international buyers, the key is to align procurement strategies with policy changes, verify supplier compliance, and build flexible supply chains. For Chinese enterprises, proactive adaptation, from license application to low-carbon transformation, will unlock long-term growth opportunities. By working together to understand and comply with the policy, B2B stakeholders can turn regulatory changes into a catalyst for more sustainable, mutually beneficial cooperation.

 

As global trade evolves, staying informed about policy updates and embracing green, compliant practices will be essential for success in the Chinese steel market.

 

MOFCOM & GAC Announcement No.79/2025:《商务部 海关总署公告2025年第79号 公布对部分钢铁产品实施出口许可证管理》