On June 9–10, 2026, the 2026 European Steel Market Conference, co-hosted by the Metallurgical Chamber of Commerce of the China Council for the Promotion of International Trade (CCPIT-MCC) and Kallanish, was held in Vienna, Austria. Mr. Li Yiren, Vice President of the China Iron and Steel Association (CISA) and President of CCPIT-MCC, delivered a keynote speech titled “Updates and Outlook of China’s Iron and Steel Industry.” In his address, he presented to European and global audiences a comprehensive picture of China’s steel sector and its firm commitment to green and low-carbon transition as a strategic response to shifting global market dynamics—a message that drew wide attention.
World-Class Green Manufacturing System
Mr. Li noted that China’s steel industry has fully entered a phase of volume reduction, quality upgrading, and structural optimisation. In the face of global market shocks from tariff and non-tariff trade barriers, Chinese steelmakers are proactively countering external uncertainties with the certainty of their own green transformation. Currently, the sector enforces the world’s strictest emission standards and energy-efficiency benchmarks, with comprehensive ultra-low emission retrofits and energy-efficiency programmes being implemented across the board. To date, over 900 million tonnes of crude steel capacity have completed full-process ultra-low emission upgrades, establishing a production system that is widely recognised as the cleanest and most environmentally advanced in the global industry—a level unmatched by other countries.
Aligning with China’s national goals of “carbon peaking by 2030 and carbon neutrality by 2060,” the industry is advancing low-carbon development along six coordinated pathways: systematic energy efficiency improvement, resource recycling, process optimisation and innovation, breakthrough smelting technologies, product iteration and upgrading, and carbon capture, utilisation and storage (CCUS). Key low-carbon technologies—including hydrogen-rich / pure hydrogen-based direct reduction, hydrogen-rich carbon-recycling blast furnaces, hydrogen-based smelting reduction, near-zero-emission electric arc furnace routes, near-net-shape manufacturing, metallurgical slag waste heat recovery, and CO₂ capture and utilisation—have successfully transitioned from laboratories to industrial-scale applications. These achievements offer replicable “Chinese solutions” for the global steel sector’s green transition.
International Mutual Recognition of EPD Platform – Aligning with Global Low-Carbon Trade Rules
On product green certification, CISA has established a mature Environmental Product Declaration (EPD) system, having released over 20 Product Category Rules (PCRs) and serving more than 9,600 registered users. The association is actively promoting mutual recognition with platforms in other countries and regions, with the aim of better serving carbon footprint traceability needs across the global steel and upstream/downstream supply chains.
With the EU Carbon Border Adjustment Mechanism (CBAM) having entered full implementation on January 1, 2026, Mr. Li emphasised that Chinese steel enterprises already possess mass-production capabilities for low-carbon steel, fully capable of meeting European green procurement requirements. China’s steel industry is also accelerating its integration into the national carbon emissions trading system and proactively aligning with global low-carbon trade rules. He expressed willingness to deepen cooperation with European and global partners, share low-carbon technological achievements, and jointly foster a greener and fairer international steel trading environment.
New Export Licensing Policy Takes Effect – Shifting Trade Structure Toward High-Value-Added Green Products
A significant adjustment to China’s steel export management came into force in early 2026. According to Joint Announcement No. 79 of 2025 issued by the Ministry of Commerce and the General Administration of Customs, effective January 1, 2026, export licences are reinstated for nearly 300 HS codes under Chapters 72 and 73 of the Customs tariff schedule, covering major categories such as pig iron, steel billets, hot-rolled coils, cold-rolled sheets, structural sections, and steel pipes. The policy requires exporters to apply for licences using authentic export contracts and quality inspection certificates from producers, under a “one licence per batch” or (with limited exceptions) “multiple batches per licence” regime. This measure is designed to curb exports of primary-processed, energy‑intensive steel products, and to channel resources toward high-value-added and green low-carbon products, further optimising the export mix.
Alongside the licensing rules, the newly revised steel capacity replacement scheme has raised the replacement ratio to 1.5:1, underscoring the government’s determination to strictly control capacity, reduce output, and improve existing assets. China’s steel industry is proactively scaling back exports of primary products while increasing the share of high-value-added green low-carbon items such as high-strength automotive sheets, high-grade electrical steel, weather-resistant steel, and offshore engineering steel—delivering cleaner, more advanced steel materials to the world.
Practical Advice for Trading Companies
For enterprises engaged in steel import and export, the 2026 market presents three key features:
On the supply side, green low-carbon certification and traceability are increasingly emphasised, with low-carbon products gradually commanding a premium.
On the export clearance side, new licence application and verification procedures require longer lead times—companies must allow sufficient time for documentation.
On the destination side, the EU, North America, and several emerging markets are intensifying access barriers such as carbon footprint disclosure requirements and anti-dumping investigations, making import clearance compliance ever more stringent.
We strongly recommend that clients, before negotiation and contract signing, verify whether the relevant HS codes are subject to the export licensing catalogue, confirm that the producer possesses the required quality inspection certificates, and consult freight forwarders and customs brokers about the latest declaration requirements. For steel products exported to the EU, simultaneous attention should be paid to CBAM reporting obligations and carbon footprint calculation rules.
Important Note: Steel exports are subject to dual constraints—China’s national export licensing regime and the import policies of destination countries (e.g., EU CBAM, anti-dumping/countervailing duties). Requirements vary by product category and destination. To ensure smooth customs clearance, please confirm the latest compliance requirements and document status before placing your order.
Sources: Compiled from “Li Yiren Delivers Keynote Speech at European Steel Market Conference: China’s Steel Industry Responds to Global Market Changes with Determined Green Low-Carbon Transition” by CCPIT-MCC (June 9, 2026); Joint Announcement No. 79 (2025) of the Ministry of Commerce and General Administration of Customs on re-imposing export licensing for certain steel products; and public reports from China Steel News Network and Lange Steel Research Centre.
