Imai stated that the steel export license system China plans to introduce from 2026 will not be effective in reducing export volumes or supporting price recovery.
Speaking at a press conference, Imai emphasized that the regulation primarily aims to restrict exports of substandard steel products, adding: “We do not believe this measure will serve as an effective countermeasure to current issues such as suppressing export volumes or influencing market prices. We understand that the licenses are intended to control product quality.”
As the world’s largest steel producer, China plans to introduce the licensing system to regulate metal exports after strong shipments triggered growing protectionist reactions globally. Rising exports by Chinese steelmakers have fueled international concern, with many countries, including Japan, arguing that Chinese producers are encouraged into overproduction by government subsidies and that low-priced exports are negatively affecting global market conditions.
According to the federation’s outlook, domestic steel demand in Japan from the construction and manufacturing sectors is expected to remain flat in the fiscal year starting in April. Crude steel output is also forecast to remain unchanged compared with the current fiscal year.
Meanwhile, Japan’s Ministry of Economy, Trade and Industry announced this week that crude steel production in the current fiscal year is projected to decrease by 3.2 percent to 80.33 million metric tons, marking the lowest level since fiscal year 1968.
Source: Reuters
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