Chinese tariff hike on coke to push up steel making costs
It is reported that China's upward adjustment of export tariff of coke and coking coal will propel the continuous production cost increase of major steel companies in the world.
Mr Liu Yanqi analyst with Haitong Securities said that the increase of coke export tariff and cut of export quotas will raise international coke prices considering China's roughly 50% weight in global coke trading volume.
Customs Tariff Commission of the State Council recently announced to crank up the export tariff of coke and coking coal from 25%to 40% and from 5% to 10%, respectively, starting from August 20.
Enterprises from China's main coke and coking coal importers like Japan, India, the Republic of Korea, the United States, Brazil and other countries will feel obvious impact from this move.
According to Shanghai Wind Information Company, China exported 8.27 million tonnes of coke from January to July, accounting for 69% of the national coke export quota.
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