Export License Boosts Steel Abrasives

China’s Announcement No.79/2025, effective Jan 1, 2026, reshapes the Steel Abrasives sector by imposing export license requirements on selected steel products. Amid surging global demand,Steel Shot factories and Steel Grit factories are adapting to quality-centric regulations, with the global market projected to hit $92 billion in 2025.

The policy mandates quality inspection certificates and compliance with GB/T 39733-2020 standards for recycled raw materials. Leading steel shot factories have scaled circular economy practices, using 95% recycled scrap to meet license thresholds while cutting costs. Top steel grit factories adopt closed-loop water systems and heat recovery tech, slashing energy use by 18% versus 2020 to align with green production norms. Both steel shot factories and steel grit factories now prioritize compliance to access global markets.

Technological upgrading accelerates under the policy. A Chinese steel shot factory launched a fully automated smart line in 2025, using IoT and robots to boost yield by 5.2% and ensure consistent quality for license applications. steel grit factories focus on ultra-fine 0.2-0.6mm products for aerospace and LNG shipbuilding, commanding 60-120% premiums—aligning with the policy’s high-value export focus. More steel shot factories are investing in specialized production to stay competitive.

Downstream demand remains strong: renewable energy drives 20% annual growth in steel shot use for wind turbines, while EV manufacturing boosts high-hardness steel shot consumption by 31% since 2023. Infrastructure projects in emerging markets sustain steel grit demand, where steel grit factories expand local distribution networks. China, accounting for 40% of global consumption, leads with Yangtze and Pearl River Delta clusters optimizing supply chains for license compliance.

 Experts forecast the global market to reach $45 billion by 2030. For steel shot factories and steel grit factories, success hinges on license compliance, tech innovation, and alignment with high-growth sectors. The policy, ending 16 years of unregulated exports, pushes China’s steel abrasives sector toward quality-driven growth.