China's tariff committee reimposed tax on imported coal from Australia, Russia and the United States, but experts said that the benefit of such move would only be short-term and hurt importers.
The tariff committee decided to levy 3 percent tax on anthracite and coking coal, 6 percent on thermal coal and 5 percent on briquettes. A 6-percent import tax has also been reintroduced by the committee on all types of coal, except coking coal.
Deng Shun, a coal analyst with ICIS C1 Energy, said that the new policy could reduce China's coal imports and would only give local traders a short-term leeway. Moreover, it would reduce the revenue of private coal traders.
Zeng Hao, Fenwei Energy Co. coal analyst, said that foreign companies have to absorb the price rise, especially if local traders cannot afford the new tariff costs.
"The real impact will be felt in May next year, when the domestic demand from steel mills for coking coal rises," said Dai Bing, director of the coal industry information department at JYD Online Corp.
According to Dai, Australia would suffer the most since it is China's largest importer of coal. Because of the tariff, Australia will have to shoulder an additional $3 to $5 for every ton of coal transported to China.
The tariff, however, will not affect ASEAN countries with free trade agreement with China. Exporters from Chile, Pakistan, New Zealand, Peru and Costa Rica will also be unaffected.