China's coke exports struggle, prices rise again Canada joins WTO case against China China accused

of restricting raw materials exports Coke exporters call on lower tariff China coal group seeks duties cut in bid to boost shipments China Approves Coke Export Quota of 6.13mn Tons China defends exports policy in wake of WTO complaint Keeping commodities China denies curbing exports

China's coke exports struggle, prices rise again 291 words 26 February 2010 Steel Business Briefing STSCNW English (c) 2010 Steel Business Briefing www.steelbb.com Chinas coke export market is still struggling half a year after the countrys domestic coke market began to recover, Steel Business Briefing learns from market watchers. Currently Chinese export coke with 10.5-12.5% ash content is selling for $490-500/tonne fob including the 40% export duty, around $20-25/t higher than last month. A major coke trader in Tianjin tells SBB that although his company is still maintaining its export operations, transaction volumes are very limited. He comments that the stagnation in transactions is not caused by any demand issue in the coke industry, but by the central governments export tax. He notes that many traders who used to export coke also withdrew from the international market in the last half of 2009. A producer in Shanxi province confirms to SBB that the coke exporting market is effectively frozen. He says that coke is categorized as a high energy, high pollution non-renewable resource by the central government and is therefore being strictly monitored by Beijing. He predicts that since Beijing is currently consolidating the countrys domestic coal industry in Henan province, which will result in a decrease in Chinas coke and coal output, the 40% export duty on coke exports is unlikely to be abolished this year. According to Chinese custom data, China exported 40,000 t of coke in January, as SBB reported. That figure is 53% lower than the same time last year and 30,000 t lower than the amount exported in December 2009. For questions about editorial content, or to subscribe call +44 (0) 20 7626 0600, info@steelbb.com Steel Business Briefing 2010 Document STSCNW0020100305e62q00005

In the News Business Canada joins WTO case against China The Gazette; Canwest News Service 117 words 7 January 2010 Montreal Gazette MTLG Final B3 English Copyright 2010 Montreal Gazette Canada will join a World Trade Organization complaint against China over its export restrictions on some raw materials, International Trade Minister Stockwell Day said yesterday. Canada is concerned that restraints like export duties and quotas "are leading to trade distortions in the world market," Day said. The WTO set up a dispute panel on Dec. 21 at the request of the United States, the European Union and Mexico. They argue the restrictions give Chinese domestic industries an unfair advantage because they can buy the raw materials - including bauxite, coke, magnesium, manganese, silicon carbide, silicon metal, yellow phosphorus and zinc - more cheaply. Document MTLG000020100107e61700011

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China accused of restricting raw materials exports

153 words 6 November 2009 China Economic Review - Daily Briefings CERPDB English Copyright 2009 China Economic Review Publishing. All Rights Reserved

The US, the EU and Mexico have filed a complaint with the WTO, claiming that China uses special taxes to discourage the export of raw materials used by the steel, aluminum and chemical industries, Bloomberg reported. They have asked the WTO to look into the legality of these restrictions, which apply to 20 metals and chemicals including coke, bauxite and manganese. The complaint says that the taxes serve to keep raw materials inexpensive and available to domestic manufacturers. The US, EU and Mexico said they asked for consultations with China at the WTO in August to discuss the issue, but this came to nothing. European Trade Commissioner Catherine Ashton added that the restrictions continue to distort competition and increase global prices, making conditions for our companies even more difficult in this economic climate. China says the taxes are designed to protect the environment and natural resources.

Document CERPDB0020091110e5b600005

Coke exporters call on lower tariff

114 words 23 September 2009 China Steel CDSTEL English Copyright 2009. China Daily Information Company. All Rights Reserved.

Industry and Regional News

China's coke industry was hit hard by the financial crisis. Overcapacity has led to a decline in coke output. Exports reached a near standstill. Producers are suffering from a heavy loss as a whole, said Huang Jingan, president of China Coking Industry Association. In the first seven months of 2009, China produced 189 million tons of coke, down 6.3 percent; and exported 283,600 tons, down 96.6 percent. He added, besides the weak international demand, high tariff is also a possible barrier to coke exports. The export duty on coke increased from 15 percent in 2007 to 40 percent in 2008.

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STEAM COAL China coal group seeks duties cut in bid to boost shipments

Reggie Le, Huaihua, Hunan Province 250 words 20 July 2009 Platts International Coal Report CWI 7 ISSN: 0260-4299, Issue 929 English 2009 McGraw-Hill, Inc.

The China National Coal Association wants the government to lower coal export duties as a way to cut the recent slide in overseas shipments, the China Coal Trade and Development Association (CCTDA) said July 15.

China started to levy a 10% duty on coal exports in August 2008, also hiking the export duty for coke to 40% from 25%, to curb to protect the domestic market. But the global financial crisis has reduced the need to guard Chinese supplies amid reduced demand.

The CCTDA did not say how much China National Coal Association wanted to lower the export duties.

China exported 11.67 million mt of coal in January to June, down 54.2% year-on-year. In the first five months of 2009, China was a net coal importer by 21.67 million mt.

The increase in coal imports and fall in exports have resulted from continued weak demand

in international coal markets and the relatively strong domestic coal market. Therefore, China's coal exports may not increase as expected even if coal export duties are cut, according to a Beijing-based analyst.

Prolonged contract coal price negotiations this year have also contributed to an increase in China's coal imports, with domestic power generators buying cheaper imported coal to beef up stocks. This has also helped reduce the need for domestic coal, pressuring local miners on prices, the analyst added.

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China Approves Coke Export Quota of 6.13mn Tons

133 words 2 July 2009 NewsTrak Daily NETRAK English Copyright 2009 NewsTrak International Co. Ltd. All rights reserved.

China's Ministry of Commerce announced on July 1 the second batch of export quotas for coke, rare earth and phosphate ore. The export quota for coke amounts to 6.13 million tons, comparing to 5.78 million tons for the first batch announced in this January. China Minmetals Corporation and Sinochem Group obtain coke export quota of 440,000 tons and 500,000 tons respectively. Meanwhile, Sinosteel Corporation, China Coal & Coke Holdings Limited and Baosteel Resources Co.,Ltd. respectively obtained coke export quota of 380,000 tons, 280,000 tons and 120,000 tons. The second batch of export quota for rare earth and phosphate ore stands at 16,267 tons and 500,000 tons respectively.

Ta Kung Pao

02 July 2009

Document NETRAK0020090702e572000p3

Foreign Trade China defends exports policy in wake of WTO complaint

Xinhua News Agency 392 words 26 June 2009 Xinhua Business Weekly XHBUSW English Copyright 2009. Xinuua News Agency. All rights reserved.

BEIJING -- China defended its exports policy on the morning of June 24 in the wake of the United States and the European Union on June 23 filing a complaint with the World Trade Organization (WTO).

An unnamed official with the Ministry of Commerce (MOC) defended China's restriction on exports of bauxite, coke, magnesium, zinc and silicon metal, among others, saying its export policies are consistent with WTO rules.

The United States and the EU claim that China's export restrictions create unfair advantages for Chinese industries and distort world competition, or went against WTO regulations.

"China's policies on these raw materials put a giant thumb on the scale in favor of Chinese producers," U.S. Trade Representative Ron Kirk complained on June 23.

He said the U.S. hoped to settle the dispute through bilateral dialogue, or the U.S. would take other measures.

The European Commission said China's move to reduce material exports may affect 4

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percent of the EU's industrial output, or 500,000 employees. The EU imported 4.5 billion euro of these materials from China in 2008.

In response to the complaints, the MOC said the export restrictions were to protect the environment and natural resources.

China made great efforts to save energy and protect the environment, according to the 11th five-year economic development outline (2006-2010). In the outline the government ordered the control of exports of some material that feature "high energy consumption, high pollution".

Zhao Jinping, an expert with the State Council, or the country's Cabinet, told Xinhua: "Export restriction on these material were in accordance with China's aim to establish an environment-friendly and energy-saving society."

He said Western countries should not complain about China's export policies, while asking China to reduce emissions and save energy." Its conflicted," he added.

China is one of the world's most important producers and providers of metals. Some metals and material are crucial for industrial development, including the electrical, chemical and chinaware industries.

According to the WTO's dispute settlement mechanism, China, the U.S. and the EU will have a 60-day period to consult. If no solution appears the plaintiffs can move to establish a WTO panel for a formal ruling. (XBW)

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China's trade policies Editorial Keeping commodities

403 words 25 June 2009 The Globe and Mail GLOB A16 English 2009 CTVglobemedia Publishing Inc. All Rights Reserved.

The complaints this week to the World Trade Organization by the United States and the European Union about Chinese restrictions on exports of raw materials are important actions, because they take on the China's subsidization of its manufactured exports, which is a major cause of imbalances in the world economy.

The prices of various raw materials for which China is a leading source including bauxite, zinc and coke (a coal extract that is a major manufacturing fuel) are kept down inside China, depressing demand by imposing export duties on some materials and export quotas on others, as well as by various pricing and licensing policies. These measures reduce the costs of Chinese manufacturers, especially in the aluminum, chemical and steel industries, which amounts to a major export subsidy.

China's essentially mercantilist strategy of relying on the exporting of manufactured goods for rapid growth has undoubtedly been highly successful, but the resulting international economic disequilibria have rebounded on China, in the course of the world's first truly global recession.

This strategy includes the Chinese government's massive buying of U.S.-dollardenominated securities, which keeps down the exchange rate of the Chinese renminbi, raises that of the U.S. dollar and thus makes Chinese goods cheaper, all of which adds up to an enormous export subsidy.

Because of the recession, the powers that be in China now have misgivings about some of

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these policies, but they are spending some of their huge foreign-exchange reserves on importing and building up stockpiles of raw materials (such as minerals from Canada), to reduce their dependence on the dollar.

Both the retaining and the importing of raw materials amount to subsidies of manufactured exports.

The White House has said that Barack Obama is working on an important speech about international trade, but it is as yet unscheduled. In the meantime, these complaints to the WTO loom all the larger, though as yet they are strictly speaking only requests for dispute settlement consultations.

The Chinese government, which used to be quite yielding on WTO disputes, is defending the policies as being for the sake of the environment and the conservation of natural resources, but is hardly denying their consequences.

The WTO will not resolve these complaints quickly, but the U.S. and the EU have rightly put this whole complex of issues more squarely on the agenda.

Document GLOB000020090625e56p0002k

China denies curbing exports

277 words 24 June 2009 08:11 Al Jazeera English AJAZEN English Copyright 2009 Al Jazeera English.

China has defended its export policies after the United States and European Union complained to the World Trade Organisation (WTO) they violated international trade rules.

The US and EU claim China's restrictions on the export of commodities including silicon, coke and zinc, give Chinese manufacturers an unfair advantage over international competitors.

But Beijing said on Wednesday its policies were designed to "protect the environment and natural resources".

"China believes the policies in question are in keeping with WTO rules," the Chinese ministry of commerce said in a statement.

If the complaints by the US and EU are not resolved within the next 60 days, the pair can formally request a WTO hearing - a process that can take up to a year.

If the outcome is in their favour and China still refuses to lift its export restrictions, the two would be given permission to impose economic sanctions on China.

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Failed negotiations

The US took its case to the WTO after more than two years of negotiations with China failed.

Ron Kirk, the US trade representative, said China's actions were endangering US jobs.

"The United States believes that China is unfairly restricting exports of raw materials,'' he said.

"These actions are hurting American steel, aluminum and chemical manufacturers, among other industries, that desperately need these materials to make their products.''

Analysts expect the fight will be just one of many trade cases the administration of Barack Obama, the US president, files against the country.

Obama made campaign pledges to take a tougher approach with US trading partners in the face of soaring job losses and the longest recession since second world war.

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