China's steel exports in July 2026 decreased by 1% to 22.2 million tons. A 9.1% increase in China's exports has raised the country's share of the global steel market from 41.6% in July 2025 to 45.7% in July 2026. However, at the same time, steel exports from other countries around the world, excluding China, fell by 7.9% to 12.0 million tons.
New Challenges for China's Steel Exports
While China continues to increase its steel exports, new challenges are on the horizon for the country in the fourth quarter of 2026. One of these challenges is the implementation of new European Union regulations regarding the tracking of raw steel sources starting October 1. These regulations, known as "melt and pour," limit the purchase of cheaper Chinese steel and its resale as local steel in the EU.
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Turkey, as one of the countries that sources about 20% of its steel needs from China, will be significantly affected by these changes. This country typically sends about 28% of its steel exports to the central or eastern Mediterranean. With reduced access to Chinese steel, Turkey is expected to face serious challenges in meeting its domestic needs.
Impacts on the Global Steel Market
The share of the Arabian Peninsula in global steel imports has also decreased, falling from 6.4% during the 2022 to 2025 period to 4.4% in 2026. This decline has significantly impacted China's exports to this region, with China's export share to the Arabian Peninsula dropping to 5.3%. These changes indicate larger challenges in the global steel market for China.
Meanwhile, India has emerged as a bright spot in this market, with a 51% increase in its steel exports in July 2026 compared to the previous year. Although this increase in exports has arisen due to strong domestic demand and pressure from cheap imports. Indian steel mills have been encouraged to export more due to low margins caused by cheap imports.
Overall, as we approach the fourth quarter of 2026, market forces affecting steel exports are expected to continue. While China has consistently increased its exports, demand from other parts of the world has decreased, leading to an overall decline in non-Chinese exports.
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