SHANGHAI China will
remove a 40-percent export tax on coke in 2013.
Coke was nowhere to be found on
the list of 2013 export and import taxes released Monday by the
countrys Ministry of Finance.
"The export tax on coke is
scrapped," an official with the ministrys taxation
department confirmed to AMM sister publication
"A cut on the tax is expected,
but a removal shows the governments resolution. China is
under pressure from the World Trade Organization (WTO), and the
overcapacity of the industry needs an outlet as well," an
industry analyst in Beijing said.
Talks of a cut or removal of the
export tax first surfaced in August 2012.
China had until year-end to act
under WTO rulings against the countrys alleged
restrictions on raw material exports.
The WTO backed claims brought by
the United States, the European Union and Mexico that Chinese
export tariffs and quotas on a range of raw materials,
including bauxite, coke, fluorspar, magnesium, manganese,
silicon carbide, silicon metal, yellow phosphorous and zinc,
broke WTO rules and distorted global markets.
China imposed a 40-percent
export tax on coke in late 2008 as part of a broader policy to
restrict the export of raw materials.
The country exported 960,000
tonnes of coke during the first 11 months of 2012, putting the
annualized rate at 1.05 million tonnes for 2012. Thats
down 91.3 percent from the level recorded in 2008, according to
Chinas coke production
remains high at 407.36 million tonnes for the first 11 months
of this year, which yields an annualized rate of 444.39 million
Exports so far this year only represent 0.2 percent of
A version of this article was first published by AMM sister
publication Steel First.