HK Stock Market Move | Steel stocks across the board fell, with the steel industry implementing export license management. Institutions are optimistic about the long-term industry supply and demand turning for the better.

Steel stocks fell across the board, as of the time of publication, Angang Steel (00347) fell by 3.72% to HK$1.81; MAANSHAN IRON (00323) fell by 2.53% to HK$2.31; and CHONGQING IRON (01053) fell by 2.52% to HK$1.16. On the news front, on December 12th, the Ministry of Commerce and the General Administration of Customs announced the implementation of export licensing management for some steel products, with the notice taking effect from January 1, 2026. The catalog of steel products included in the export licensing management covers 300 items, including some stainless steel and oriented silicon electrical steel products. Orient stated that the release of this new policy signifies a new stage in the export management of domestic steel, and the export structure may see optimization and upgrading. Changjiang stated that the implementation of export licensing management for steel may result in short-term export impulses, with supply and demand facing pressure in the early part of next year. In the medium to long term, this may be beneficial for the industry's development. In the long term, the implementation of export licensing management is expected to impact raw material demand, particularly for iron ore that captures the majority of profits in the industry chain. In addition, low-end steel enterprises that cannot afford the cost of exporting may face the fate of clearance, and the supply and demand in the steel industry may see improvement.