China is preparing to launch a licensing regime for steel exports, raising hope of an easing global oversupply, supporting prices. The Chinese government said in a statement that exporters will have to seek permission to ship out a range of steel products from January 1. Notably, the move emerges at the end of a record year for China’s steel exports, which has increased trade tensions and depressed prices in the economies which were not safeguarded by tariffs, such as India.
China’s steel exports in 2024 According to the World Steel Association, China exported 117.1 million tonnes of steel in 2024. India’s steel production, the second highest in the world in the same year, was 149.4 mt.
Undoubtedly, permits for China’s steel exports are not new; however, this plan is likely to significantly widen the scope of products covered. The ministry included a list of some 300 specific products that will require the paperwork, such as types used in industries as diverse as car-making, construction or consumer goods.
Whereas direct import from China to India projected a tapering trend in the first six months of CY25, the elevated availability of the commodity in the international market also squeezed the opportunity for Indian companies targeting those geographies. As a result, India’s imports have also fallen, making it still the net importer of the metal. In FY25, China was the largest exporter to India, rising 12 per cent to 2.83 mt.