SteelOrbis Shanghai
On May 21, China's Ministry of Finance announced an increase in the tariffs on coke and coal tar exports, to be effective from June 1, 2007. According to the new tariff list, the tax rate on coke exports rises from five percent to 15 percent, while the coal tar export tariff is up from five percent to 10 percent. Meanwhile, the government has cut the tariff on coal imports from one percent to zero percent.
Most market players think that the export tariff increase will not have much impact on coke exports because of the strong demand for coke in the international market. Furthermore, the tariff increase will be unable to prevent coke prices from rising and so the domestic coke market will continue to move on an upward trend. This latest Chinese adjustment to import and export tariffs would seem to further demonstrate China's determination to limit exports of resource commodities.