Coke Export Tariff Rises to 40%      

China raises the export tariff on coke to 40% from 25% and lifts export tariff on coking coal to 10% from 5%, effective August 20th, 2008, according to the Ministry of Finance.
    The export tariffs on bituminous coals have been set temporarily at 10%.  
    "The move is to limit exports of coke and coal and ease a tight supply in the domestic market," an insider says.
    According to an analyst, the country's net coal exports reached 4.24 million tons and 1.39 million tons this June and July respectively. This has undoubtedly aggravated the domestic coal shortage. However, he expresses the upward export tariffs on coke and coals will not have impact on the supply and demand balance but will show the government's efforts to limit coal exports.
    Shenhua Group, the leading coal player in China, reports the increased export tariff on coal will add its export cost but will not lower its profit because the company may increase the exported coal price.
    China practices the export quota for coal and coke, with the first batch of coal export quota for 2008 of 31.2 million tons and the unclear second batch of export quota. And coke export quota for 2008 is 12.01 million tons. China exported 30.28 million tons of coal and 8.27 million tons of coke respectively between January and July 2008. "The government will maybe cut down the export quota for coal and coke to meet the domestic needs for coal and coke," according the analyst.