China is to cut export tariffs on coal from 1 January 2015, as part of the country’s efforts to re-order trade and foster economic growth.
Said to be the world’s largest consumer of coal, China will also adjust the export tariffs for a range of other commodities.
Go deeper with GlobalData
According to the Ministry of Finance, for all unprocessed coal, export tariffs will be cut to 3% from the existing 10%, reports Reuters.
The existing 1% import tax will be scrapped for both ferro-nickel and ferro-chrome.
The country’s decision to slash coal export tariffs follows intense lobbying by the China National Coal Association, as falling coal prices have put pressure on nearly 70% of mining companies with more than half of them owing wages to staff.
See Also:
Analysts have noted that some sectors such as coal and rubber face deep structural issues and the tariff adjustments will provide very limited support.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThere was little risk of Chinese supplies flooding the Asian Pacific seaborne market despite the sharp drop in coal export taxes, industry experts said.
This is due to higher domestic prices compared with those from countries, including Australia and Indonesia, which are said to be the top exporters.
Image: A coal shipment underway in China. Photo: courtesy of Rob Loftis.
