Announcement No. 79 of the General Administration of Customs of 2025 clearly stipulates that starting from January 1, 2026, the export of various steel products such as steel plates, steel bars and steel pipes shall be handled with export licenses. For steel exporters deeply engaged in the Middle Eastern market, this policy is not only a compliance test, but also hides significant development opportunities.
In the short term, enterprises are facing direct pressure from compliance costs. The newly added license application process requires coordination with competent commercial departments, with a processing cycle of 1 to 2 weeks reserved. This will lead to increased labor and time costs, which may result in delayed deliveries to Middle Eastern customers. Small and medium-sized enterprises relying on gray export channels will find it difficult to obtain licenses due to their inability to provide genuine contracts, and some low-value-added orders may have to be lost.
However, the long-term benefits are more prominent. The Middle East has robust demand for infrastructure construction and is shifting toward high-quality steel products. The new policy's control over low-value-added products will force enterprises to upgrade their product mix, focusing on high-end categories such as high-strength construction steel. This not only aligns with market demand but also improves profit margins.
In addition, the policy has eliminated irregular low-price dumping practices. Compliant enterprises will enjoy a more level playing field in the Middle Eastern market, making it easier for them to secure long-term orders for large-scale infrastructure projects. Taking the initiative to standardize export activities can also reduce the risk of trade frictions, laying a solid foundation for enterprises to expand their footprint in the Middle East.