On January 1, 2026, China’s steel industry will usher in a landmark moment—the export licensing system will officially cover DINSEN cast iron pipes and ductile iron pipes. When the first batch of ductile iron pipes requiring license numbers to clear customs were loaded onto ships at Tianjin Port, the nerves of the global infrastructure materials supply chain were subtly tugged. This is not merely a change of adding a number to customs declarations, but a profound transformation aimed at reshaping the industry ecosystem, its ripples affecting every link from Chinese foundries to African water conservancy projects, from European municipal pipelines to Southeast Asian infrastructure projects.
I. Stopping Vicious Competition: How Licenses Become a “Price War Brake”
Over the past five years, the mismatch between China’s ductile iron pipe production capacity expansion and global infrastructure cycle fluctuations has led to a fierce export price war. Taking DN500 ductile iron pipe as an example, the average export price has fallen by more than 40% from its peak in 2021, with some companies even teetering on the edge of cost.
One of the core logics of the export licensing system is to bring an end to this “war with no winners” through supply adjustments. The licensing system links licenses to indicators such as capacity utilization, environmental performance, and technical standards, effectively creating a dynamic capacity filter:
Prioritizing Compliant Capacity: High-quality capacity that meets environmental standards and possesses advanced technology will receive stable export licenses.
Eliminating Inferior Capacity: Export channels for outdated, energy-intensive, and polluting capacity will be gradually tightened.
Price Return to Rationality: Orderly supply will support export prices returning to reasonable value.
II. Navigating Freight Fluctuations: International Logistics Game Under the New Mechanism
As the licensing system is implemented, the global shipping market is experiencing a new round of fluctuations. Since the second half of 2025, factors such as the Red Sea situation and the Panama Canal drought have combined to cause container freight rates from China to major European ports to rise by approximately 65% compared to the beginning of the year. Previously, when shipping rates fluctuated sharply, domestic exporters often resorted to price reductions regardless of cost to maintain orders, further intensifying competition.
The new system provides a shock-absorbing mechanism to cope with freight cost shocks:
* Increased proportion of long-term agreements: High-quality enterprises with license guarantees are more likely to sign long-term agreements with overseas buyers, locking in profit margins.
* Optimized transportation methods: Enterprises can more flexibly choose alternative solutions such as China-Europe freight trains and combined transportation based on stable export plans.
* Risk-sharing mechanism: When prices rise, buyers and sellers can negotiate freight cost sharing ratios based on the stable supply guaranteed by licenses.
III. Practical Guide: A Complete Analysis of the Export License Application Process
For enterprises, mastering the key points of license application is the first key to unlocking the 2026 market. According to the existing policy framework, the process can be broken down into three key stages:
* Overall Process: Enterprise applies for an electronic key for identity authentication and binds an electronic seal → Logs into the Ministry of Commerce website → Ministry of Commerce Business System Unified Platform → Export License Application System → Fills out the application form online → Uploads scanned copies of application materials as attachments → Submits the application form → Initial review by the issuing agency → Secondary review → Electronic license generated upon approval → Electronic license sent to customs → Enterprise completes customs declaration procedures with the license number.
On the first day of 2026, as brand-new export licenses began to accompany each batch of ductile iron pipes across the ocean, an old chapter in China’s steel industry was closing, while the first page of a new chapter reads: from “winning by quantity” to “winning trust by quality,” from the “red ocean of price wars” to the “blue ocean of value.” DINSEN actively responded to national policies, applying for export licenses at the earliest opportunity—rushing towards a more efficient, sustainable, and market-respecting direction.
Post time: Dec-25-2025
