China imported 187 million tons of the low calorific value steam coal during the first seven months of the year, with 97% of that coming from Indonesia.
China’s State Council last week approved a plan to increase the tax on lignite imported from countries under the most-favored nation trade status from 0% to 3%, according to a statement from the Finance Ministry.
The rule came into effect on August 30, it said.
The statement did not specify which grades of lignite would be impacted by the tax, although Reuters reports that industry sources have predicted it will be between 3800 and 4200 kilocalories per kilogram.
Return to ILN for details as they become available.
