China may remove exports tariff from Steam coal to boost its exports market.
China, worlds leading coal consumer and producer, is thinking over to remove exports tariff from Steam Coal to boost its Coal exports and to sell its domestic coal over international market. They may remove export tariff of 10% on Steam Coal from the starting of 2014.
Similar to China, its neighboring countries i.e. Japan, South Korea, and Taiwan are also the world's leading coal importers and majorly import coal from Australia. China's export tariff removal may hamper Australia's coal market, as this would increase the coal supplies in Asia Pacific market.
Coal exports from Beijing which used to be under annual quota system by only four coal exports license holders which are China National Coal Group, Shanxi Coal Import and Export Group, Shenhua Group and Minmetals Group. The Quota system was introduced in China in 2004 to balance China's coal demand and supply.
Industry is anticipating that because of -export tariff removal Chinese coal will be more competitive and this will boost the competition in Asian coal market.
Leave a Reply