Coke export tariff increases push up the cost of foreign steel prices – the cost of steel, coke prices – steel industry
National Tariff Commission has issued a notice announced an increase in coke and coking coal Export tax Rate. This, analysts believe the move will allow for major global steel production cost per tonne of steel continue to rise.
Bank of China International Iron and Steel Industry folk music researcher, said Xu, China's coke exports to most large global steel production, coke export tariff increase will further push up the cost per tonne of steel foreign steel.
If a foreign steel used in all of China's coke enterprises will increase their cost of around 40 U.S. dollars per tonne.
Hai Tong Securities industry researcher Liu Yanqi said that as China's coke exports account for about half of global coke trade, therefore, to improve China's coke export tariffs and export quotas reduced, will further raise the price of global coke trade; which those self-sufficiency rate of coke lower the impact of foreign steel prices higher.
It is understood that Japan, South Korea, India and China's coking coal imports more countries, Brazil, the United States, Japan, India, France, South Korea is the country imports more coke in China, and global production of steel in these countries is large.
Taking into account the recent decline in domestic steel prices and demand for domestic steel market is expected to weaken in the second half, foreign ton of steel costs will increase domestic and international steel price difference?
This, Xu folk music that, depending on the cost of the transfer channel is smooth. In their view, if the second half of the international market of steel to weaken, the foreign manufacturers will not and can not transfer the cost increase, then the difference between domestic and international steel prices are less likely to widen; the other hand, if the second half of the foreign steel demand strong, foreign producers are able to shift costs, both inside and outside the possibility of widening spreads relatively high; if the internal and external spreads widen, as long as there is still profit margins of domestic steel exports, then the loss will increase export tariffs on resource protection functions.
"In pushing up the cost of foreign steel per tonne, the second half of the foreign steel counterparts will face the situation of relative shortage of coke." Liuyan Qi said.
WIND data show that in 2008 China's annual export quota of coke capacity of 12.01 million tons, but 1-7 months, China has exported 8.27 million tons of coke, accounting for 69% of the quota year, the equivalent of 8-12 months only remaining months were 750,000 tons less than the export volume, while the 1-7 months the average monthly export of 1.18 million tons, equivalent to the first half of the second half of the average monthly relative reduction of 430,000 tons. Liu Yanqi that year as the global coke trade volume of 3000 tons, also were 2.5 million tons a month, so the first half of the second half of the average monthly relative reduction of 430,000 tons, representing a decrease of 17.2% of global supply, so the next six foreign coke supply will become more intense.
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