China to introduce steel export quotas under new trade controls
China to introduce steel export quotas from January 1, 2026, marking a major policy shift. The General Administration of Customs will oversee quotas covering at least 100 steel-related products. These products span pig iron, ferrous alloys, and finished steel categories.
The listed items align with roughly 100 Harmonized System codes. Exporters must apply for quota approvals before shipping these materials.
As a result, Chinese steel exports will face tighter administrative oversight.
China to introduce steel export quotas with tax enforcement goals
Regulators designed the quota system alongside China’s Ministry of Commerce. Officials aim to address long-standing criticism over Chinese steel overcapacity.
However, authorities also target export tax avoidance within the metals sector.
Industry sources say quotas will improve shipment tracking and duty collection. The system links export permissions directly with tax compliance mechanisms.
Therefore, exporters may face higher effective costs per tonne.
Global steel trade impact under quota restrictions
Market participants expect early impacts on billet and slab exports. Turkey and India rely heavily on Chinese semifinished steel imports.
Meanwhile, these materials often replace scrap-based electric arc furnace output.
Some traders expect near-term volume declines once quotas activate. Others argue state-owned mills may absorb losses to protect employment.
Consequently, production cuts may lag policy implementation.
SuperMetalPrice Commentary:
China to introduce steel export quotas at a sensitive point for global steel markets. The policy may support regional pricing power outside China.
However, sustained impact depends on enforcement discipline and mill compliance.
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