• 2 minutes Oil prices going down
  • 11 minutes China & India in talks to form anti-OPEC
  • 16 minutes When will oil demand start declining due to EVs?
  • 1 hour Oil prices going down
  • 13 mins We Need A Lasting Solution To The Lies Told By Big Oil and API
  • 10 hours Another WTH? Example of Cheap Renewables
  • 2 days Bullish and bearish outlook for oil
  • 21 hours Trump Hits China With Tariffs On $50 Billion Of Goods
  • 2 days Rolls Royce shedding 4,600 jobs
  • 1 day When will oil demand start declining due to EVs?
  • 1 day Russia's Rosneft 'Comfortable' With $70-$80 Oil Ahead of OPEC Talks
  • 1 day The Wonderful U.S. Oil Trade Deficit with Canada
  • 1 day What If Canada Had Wind and Not Oilsands?
  • 2 days After Trump-KJU, Trump-Putin Summit
  • 2 days U.S. Cars Will No Longer Need 55mpg Fuel Efficiency By 2025.
  • 4 hours China & India in talks to form anti-OPEC
  • 2 days Epic Fail as Solar Crashes and Wind Refuses to Blow
  • 2 days OPEC soap opera daily update
  • 24 hours The Permian Mystery
Alt Text

U.S. Coal Finds Footing In European Markets

The struggling U.S. coal industry…

Alt Text

Unexpected Move From China Boosts Coal Prices

After falling for a couple…

Alt Text

Federal Regulators Deal Huge Blow To The Coal Industry

The Federal Energy Regulatory Commission…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Coal Exporters Just Got A Big New Competitor

Coal Exporters Just Got A Big New Competitor

Rumors emerged last week of big changes coming in the coal market. From one of the world's largest players in the business.

That's China. Where officials are reportedly moving to change the country's coal export policies--with potentially large consequences for other exporters globally.

Platts quoted "industry participants" as saying that the Chinese government is close to announcing a cut in coal export duties. With sources suggesting that export taxes could be reduced to 3%, from a current 10%, as early as January 1, 2015.

Coal companies were reportedly meeting on Friday with China's National Development and Reform Commission, to finalize details around the new rules.

If a drop in export taxes does materialize, it could have a significant effect on the global coal market. China's 10% export duty has been in place since August 2008, when it was introduced in preserve strategic coal resources for domestic use.

It now appears however, that officials no longer see a need to keep all of this supply at home. Indeed, domestic coal production has been surging the last several years--while consumption growth is no longer seeing the big increases it was posting over much of the last decade.

Faced with the possibility of oversupply, it appears that officials want to once again allow Chinese producers to sell to the rest of the world. With the cut in export duties intended to spur higher levels of exports. The move also comes after the government imposed higher duties on imported coal in October, in an attempt to limit shipments coming into the country and competing with domestic production.

All of this could mean that coal exporters such as Australia, South Africa and North America will be seeing increased competition. And it could happen within the next few months, if the January 1 date for policy changes turns out to be correct.

Some analysts have suggested the move will mostly impact the metallurgical coal market.

With Chinese exports enjoying a cost advantage when shipping to key markets like Japan and South Korea.

Watch for news on official approvals of the new export policies. And increased competition coming in these markets--along with possible falls in prices, as increased global supply potentially leads to a buyers' market here.

Here's to opening up again,

Dave Forest




Back to homepage

Trending Discussions


Leave a comment
  • John Scior on November 17 2014 said:
    This shortly after China agrees to curb greenhouse gas emmissions. They are merely exporting their greenhouse gasses to another developing country while the coal miners in the United States suffer.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News