China considers steam coal import tax reduction
A major shortage of steam coal supplies, especially in South
China, has prompted Beijing to look into reducing the import tax imposed on steam coal from the current 6% to 2%.
The steam coal shortage was brought upon by the fact that the country applies 11% rebate on steam coal exports, while the current import tax is 6%. Chinese exporters sent more than 60 million tons of steam coal abroad last year in order to capitalize on higher international prices. In contrast,
China imported only 2 million tons of steam coal.
Chinese power plants face the danger of inadequate supply due to the shortage of steam coal, thus potentially plaguing the country and its burgeoning steel industry with power shortages.