In January-February 2026, steel exports from China decreased by 8.1% compared to the same period last year, totaling 15.59 million tons. The main reason for this was the implementation of new requirements for obtaining export licenses, which slowed the pace of shipments abroad.
This is reported by Finway
“At the end of last year, Beijing introduced a plan to implement a licensing system for regulating steel exports starting in 2026, as active shipments to foreign markets triggered a rise in protectionist responses in many countries.”
Increase in Iron Ore Imports and Pig Iron Production
At the same time, in the first two months of 2026, China increased its iron ore imports by 10% to 210.02 million tons compared to the same period in 2025. The main growth came from Australia, which remains the largest supplier, as well as an increase in domestic demand for the raw material.
China traditionally combines data for January and February to account for the impact of the Lunar New Year celebrations in February. During this period, daily pig iron production, which is an indicator of demand for ore, increased by 1.2% year-on-year. The average monthly production was 105.01 million tons, although it was higher in December at 119.65 million tons.
Trends in China’s Foreign Trade
Despite the reduction in steel exports, China’s overall export figures in January-February 2026 showed a sharp increase of nearly 22% compared to the same period in 2025, significantly exceeding economists’ average forecast of 7.2%. Imports also rose by nearly 20%. As a result, the trade surplus reached a record high of $214 billion.
Geographically, the largest decrease in exports was recorded to the United States, down 11%. In contrast, exports to Africa increased by almost 50%, to Southeast Asian countries (ASEAN) by over 29%, and to the European Union by nearly 28%.
The total volume of China’s foreign trade in the first two months of 2026 increased by 18.3% year-on-year, reaching 7.73 trillion yuan (approximately $1.12 trillion). Of this, exports amounted to 4.62 trillion yuan (up 19.2%), while imports were 3.11 trillion yuan (17.1% higher than the previous year).
High rates of China’s foreign sales were recorded even before the escalation of the conflict in the Middle East; however, further deterioration of the situation in the region could create new risks for the Chinese economy and global trade flows.