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Article
China raises coke export tariff rate to 40%
Friday, August 22, 2008 | eMail ArticleeMail Article | Follow ProphecyResCorp on Twitter Follow Goldmau On Twitter
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China is to raise the coke export tariff rate to 40 percent as of August 20, up from 25 percent, said the State Council's customs tariff commission on Friday.

    This move aims to ease a tight coke supply in domestic markets and to contain export of products with high pollution and energy cost.  China is the world's biggest coke exporter, which accounts for 60 percent of the coke trade volume.

    Despite some western country's move in reducing coke production for environmental reasons, China's coke exports have continued to increase in recent years. Coke exports surged to 14.50 million tonnes in 2006, representing an increase of 14 times in 15 years since 1991. The figure hit a record 1.66 million tonnes in May this year.

Continued at Xinhua News



Xinhua China News

Goldmau.com comment:

Despite concern with slowdown in China, the tight commodity supply within the country is a sign that growth is still apparent. Government is starting to impose high tariff on export of commodities, which reduces global supply; strengthening the fundamental demand of commodities and metals.

Commentary courtesy David Cai, Goldmau.com analyst.

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