Starting on January 1, 2026, China will require export licenses for 300 steel products, including hot-rolled coils, cold-rolled coils, and stainless steel products, to regulate trade and cut low-end overcapacity. This policy aims to manage trade tensions with the US and EU while encouraging the production of high-quality, eco-friendly goods.

Exporters must now provide real contracts and quality certificates to get approval. Although this adds new paperwork for many, the silicon steel sector faces a very limited impact. As a high-value product used in advanced technology, silicon steel is not the primary target of these restrictions, which focus more on high-energy, low-margin goods. For silicon steel exporters, the new process is a routine administrative step that takes only a few days.

The new rules may cause short-term drops in exports, but they will improve the industry over time. The policy forces a shift toward high-value products and ends unfair low-price competition. By organizing export orders, China aims to upgrade its steel sector and secure a stronger position in the global market.