China started to levy 5% export tariff on coke as of Nov. 1, 2006 to protect domestic resources, leading to a 44.6 percent month-to-month drop in coke exports to 883,000 tons in the following month. However, coke exports surged to 1.30 million tons in Jan, 2006, or up 38.7% year-on-year and 47.3% over the previous month. It was obvious that the 5 percent export tarriff had not worked in curbing the strong export momentum.

On the part of coke price, the export price of coke was 150.3 US dollars /ton in Jan, up 24.8% over the previous month, continuing its upward trend in 2006, but the world's average coke cost was 171 US dollars/ton, leading to anti-dumping investigations into China's coke exports successively carried out by the United States, EU.

China's coke export quota still stays at the level of 14 million tons this year to balance the interests of all parties concerned, but export tariff can be used by the government as an effective tool to curb export. Industry exports forecast that China's coke exports may still reach up to 13.50 million tons this year after additional 5 percent export tariff is levied, and may be capped 10 million tons at the tariff rate of 20 percent, or 7 million tons at the tariff rate of 50 percent.

Coking coal is of scarce resources, with coking industry energy-intensive and highly pollutant, Since China is trying to improve energy efficiency and cut export of energy-intensive products, and to reduce export surplus, so coke is easily the target commodity selected by the government to achieve its export policy adjustment.