Steel stocks experienced a broad decline in Hong Kong trading. As of press time, ANGANG STEEL (00347) dropped 3.72% to HK$1.81, MAANSHAN IRON (00323) fell 2.53% to HK$2.31, and CHONGQING IRON (01053) slid 2.52% to HK$1.16.

The sell-off followed an announcement by China's Commerce Ministry and Customs on December 12, revealing plans to implement export license management for certain steel products starting January 1, 2026. The new regulation covers 300 product categories, including select stainless steel and grain-oriented silicon steel products.

Dongxing Securities views this policy as marking a new phase in China's steel export management, potentially leading to structural optimization in exports. Changjiang Securities suggests the measure may create short-term export volatility, with potential supply-demand pressure in early 2026, but believes it will benefit the industry's long-term development.

Analysts note that the export license system could eventually curb raw material demand, particularly for iron ore which currently captures most industry profits. The policy may also accelerate the exit of low-end steel producers unable to meet export requirements, potentially improving overall industry supply-demand dynamics.