China will control its coke exports with various policies and measures after canceling its coke export quota in 2006, said a senior official of the State Development and Reform Commission on Sunday.

Hou Shiguo, deputy director of the Industrial Policy Department of the SDRC, made the remark here at China's First International Forum on Coal, Coke and Chemicals Industry.

According to China's bid to the World Trade Organization (WTO), China will cancel its export quota for coke in 2006. "But that does not mean China will loose its control on coke exports," said Hou.

Hou said China will use various measures, such as taxation, to restrict coke exports.

China canceled its tax rebates to coke exporters in 2004. 2005 saw China reduce tax rebates given to exporters of products such as billet, rolled steel and coal and the canceling of tax rebates on even more exporters including those of electrolytic aluminum and ferroalloy.

"This means China is changing its export policy for resources or high-energy consumption products from encouragement to a neutral or restrictive attitude," said Chen Wenjing, vice president of the Chinese Academy of International Trade and Economic Cooperation of the Ministry of Commerce (MC).

China has an annual coke export ranging from 14 to 15 million tons. In the first quarter of 2005, China saw a boom in coke exports. According to statistics from the MC, China's coke export volume rose by 70 percent over the same period of last year with the export value grow by about 60 percent.

Hou said that even adhering to international trade principles, China will not change its principle of controlling coke exports.

With the rapid growth of China's steel industry in recent years, China saw a boom in the demand for coke, a major raw material in steel production.

China boasted a coke output of 209 million tons in 2004, covering over half of the total output of the world. China's coke trade volume in 2004 accounted for over 60 percent of the total trade volume of the world.

Hua Zugui, chairman and CEO of China Coal & Coke Holdings Limited, said that there are louder and louder voices in China over recent years asking for coke export reductions for the sake of environmental and natural resources protection.

Hua suggests China should hold a responsible attitude, obtain understanding from international coke importers and reduce its coke export volume gradually.

He believed that after canceling its coke export quota, China will issue feasible and proper policies to help keep the international coke price at a reasonable level.

Source: Xinhua