(Yicai) Dec. 15 -- China is set to reinstate steel export licensing from next year, 16 years after it was abolished.

Export permits will be needed for 300 products, spanning the entire steel supply chain from raw materials to finished goods, from Jan. 1, the Ministry of Commerce and the General Administration of Customs jointly announced on Dec. 12.

The move is aimed at standardizing exports and promoting the industry’s high-quality development, while helping to maintain the global supply and demand balance and ensuring trade stability, according to the China Iron and Steel Association.

Tougher export control is needed to guide domestic industry upgrades and engage in global supply chains, the CISA said, adding that the move will help manage trade flows, streamline trade channels, align domestic and international markets, and support the domestic steel industry’s transformation.

China exported nearly 108 million tons of steel in the first 11 months of the year, up 6.7 percent from a year earlier, according to GAC data. For the full year, exports are expected to set a new record of 115 million tons.

But rising shipments have coincided with falling export prices, driven by a surge in low-value-added key products. The average price of Chinese steel exports was USD699 per ton in the first half, down more than 10 percent from a year ago, the data showed.

The “volume over price” export model increases energy use, carbon emissions, and the risk of trade disputes, undermining long-term high-quality development goals, said Chen Leiming, executive president and secretary-general of the China Metal Materials Circulation Association.

Since the start of last year, China’s steel industry has been involved in more than 50 anti-dumping cases. Many countries, including Vietnam and India, have imposed anti-dumping duties on Chinese hot-rolled coils and plate, with tax rates as high as 38 percent.

Steelmakers should familiarize themselves with the new licensing product list and prepare application materials, including export contracts, Chen said. He also urged increased research and development spending on high-end products such as bearing steel, gear steel, and high-temperature alloys.

Editor: Futura Costaglione