China's New Steel Export License: An Ineffective Solution?

Japan Iron and Steel Federation Chairman Tadashi Imai stated China's new export-license requirement may not effectively reduce steel export volumes or affect prices. As the world's leading steel producer, China's high export levels have sparked global concern. Japan's domestic steel demand is forecasted to remain flat in the coming fiscal year.

Japan Iron and Steel Federation Chairman Tadashi Imai expressed doubts about China's planned export-license requirement, asserting it won't curb steel export volumes or aid in price recovery. China, the largest steel producer, aims to regulate metal exports through a licensing system by 2026, responding to growing global protectionism.

Imai believes the licensing targets substandard steel products but won't address current challenges like export volume suppression or price impact. China's rapid export growth has raised international concerns, with Japan criticizing its subsidized overproduction and low-priced exports that destabilize global markets.

The federation forecasts Japan's domestic steel demand from construction and manufacturing will stay flat in the next fiscal year, with crude steel output unchanged. Japan's trade ministry predicts a 3.2% drop in crude steel output this year, the lowest since 1968. U.S. tariffs also impact Japanese exports, potentially reducing profits and halving exports to the U.S.

(With inputs from agencies.)