Navigating China's 2026 Steel Export Licensing System: A Strategic Guide For Global Buyers - News

If you source steel products from China, you may have heard about the major regulatory shift announced by the Ministry of Commerce and the General Administration of Customs (Announcement No. 79).

Starting January 1, 2026, China will reimplement an Export Licensing System for a wide range of steel products.

For many buyers, this news brings uncertainty. Will prices rise? Will shipments be delayed? As industry experts deeply rooted in the Chinese steel market, we are here to interpret what this policy really means for your business-and why it might actually be good news for quality-focused buyers.

1. The Policy: What is Changing?

In simple terms, the era of "unregulated exports" is ending. Previously, exporting steel was relatively straightforward. Under the new system, exporters must apply for a specific Export License for every shipment.

Crucially, to obtain this license, the exporter must provide a Quality Certificate issued directly by the manufacturer.

The Scope: It covers approximately 300 HS codes, including pig iron, billets, hot-rolled coils, and various finished steel products.

The Goal: To ensure that every ton of steel leaving China is traceable, compliant, and meets quality standards.

2. Why Now? The Expert Interpretation

Why is the Chinese government adding this extra step? It is not about stopping exports; it is about optimizing them.

Quality Over Quantity: China is shifting from being a volume-based supplier to a value-based one. This policy acts as a filter to weed out low-quality, "non-compliant" materials often sold by speculative traders.
Green Responsibility: As the world moves towards decarbonization (including the EU's CBAM), this system allows for better tracking of carbon footprints and energy usage.
Market Stability: By controlling the disorderly expansion of low-end exports, China aims to reduce international trade friction and anti-dumping investigations, creating a more predictable long-term market.

3. How This Impacts You (The Buyer)

What does this mean for your procurement strategy in 2026?

The End of "Grey Market" Steel: Small, unverified trading companies that cannot secure official mill certificates will no longer be able to export. Supply chains will become cleaner and more transparent.
Extended Lead Times: The administrative process for licensing will add a few days to the timeline. Planning is now critical.
Price Rationalization: While "rock-bottom" prices from shady sources will disappear, the market prices from legitimate suppliers will stabilize. You are paying for reliability and compliance.

4. Our Advice: How to Adapt

To ensure your supply chain remains uninterrupted, we recommend the following steps:

Audit Your Supplier: Ask your current Chinese supplier, "Do you have direct access to mill certificates?" and "Is your team prepared for the license application process?" If they hesitate, your supply chain is at risk.
Plan for Buffer Time: Update your logistics planning. We recommend adding 7-10 days to your lead time expectations for the first quarter of 2026 as the system comes online.
Prioritize Compliance: Stick to suppliers who prioritize "Green Steel" and transparent documentation. This protects you from customs issues at both ends.

5. Why Promisteel is Ready

At Promisteel, we have anticipated this shift.

We have established direct strategic partnerships with major state-owned and compliant private steel mills.

Our documentation team is fully trained on the new licensing protocols.

We guarantee that every shipment we send is fully compliant, traceable, and hassle-free.

The rules of the game have changed, but our commitment to your success hasn't.