Export-discouraging policy barely curbs rising coke prices
(www.chinamining.org)
Updated:
2007-05-23 14:11
Counter:
China's newly raising tariffs on coke export will not influence much the export volume and prices of China's coke export due to robust international demand, said Huang Jingan, an official of the China Coking Industry Association.
Huang said the China's exported coke has long met with antidumping blames in international markets because of its much cheaper prices, and the tariff raise will increase the prices and traders have large chances of passing the higher cost to downstream buyers.
For coke producers, the new policy came as no surprise, as National Development and Reform Commission said at varied occasions that export tariffs would be adjusted by big margins and hoped related companies to take that in mind.
China used to provide a 13 percent rebate on coke export. But since 2004, it gradually phased out the rebates and replaced that with export tariffs, with last adjustment taking place at yearend 2006.
Starting on November 1, 2006, a 5 percent export tariff was imposed on coke, which resulted in a slight drop of coke export in the following month but a rapid rebound afterwards.
With higher export cost passed down to importers, China's coke export has been on a fast-rising track.
Hua Zugui, chairman of China Coal & Coke Holding Ltd., hold that China's coke prices will rise steadily, by about 5-10 percent in 2007.
On May 21, the Chinese government announced to increase coke export tariff from 5 percent to 15 percent while raising import tariffs of coal products from 0-1 percent to 0-3 percent. The new tariffs will take effect as of June 1.
That shows the Chinese government's determination to keep a tight grip on resource trading in a bid to realize a sustainable development of the country's economy, which is predicted to grow by a dazzling 11 percent in 2007.
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