China is to cut export tariffs on coal from 1 January 2015, as part of the country’s efforts to re-order trade and foster economic growth.
Said to be the world’s largest consumer of coal, China will also adjust the export tariffs for a range of other commodities.
According to the Ministry of Finance, for all unprocessed coal, export tariffs will be cut to 3% from the existing 10%, reports Reuters.
The existing 1% import tax will be scrapped for both ferro-nickel and ferro-chrome.
The country’s decision to slash coal export tariffs follows intense lobbying by the China National Coal Association, as falling coal prices have put pressure on nearly 70% of mining companies with more than half of them owing wages to staff.
Analysts have noted that some sectors such as coal and rubber face deep structural issues and the tariff adjustments will provide very limited support.
There was little risk of Chinese supplies flooding the Asian Pacific seaborne market despite the sharp drop in coal export taxes, industry experts said.
This is due to higher domestic prices compared with those from countries, including Australia and Indonesia, which are said to be the top exporters.