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Reports that China will lift its 40% export tariff on coke coal and semi-coke coal beginning...

Reports that China will lift its 40% export tariff on coke coal and semi-coke coal beginning Jan. 1 has U.S. coke exporters on edge, since China has significant excess capacity, according to Nomura. China's coke exports could compound current market dynamics struggling with oversupply and the lowest prices since 2009. the firm foresees.
Comments (9)
  • HoldAndBuyInvestor
    , contributor
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    This is very weird statement. It will drive up pressure as Chinese sellers were selling for artificially low. China consumes most met coal. I guess nomura forgot the facts as they are short.
    19 Dec 2012, 01:31 PM Reply Like
  • HoldAndBuyInvestor
    , contributor
    Comments (146) | Send Message
     
    Also, this is my open question to seeking alpha folks, are they sort on coal. Every article is twisted to sound negative for coal.
    19 Dec 2012, 01:31 PM Reply Like
  • HoldAndBuyInvestor
    , contributor
    Comments (146) | Send Message
     
    Few more points.

     

    - China also lifted tax on thermal around sept. It drove thermal price in china lot higher. They are now importing lot more. There was an article on china daily that chinese buying are rushing to sign contracts at current prices.

     

    - You can see analogy with NG in USA.
    19 Dec 2012, 01:31 PM Reply Like
  • HoldAndBuyInvestor
    , contributor
    Comments (146) | Send Message
     
    Just found information that China does not have met coal access. This is done to prevent local sellers selling for losses.
    19 Dec 2012, 01:31 PM Reply Like
  • mmritas
    , contributor
    Comments (23) | Send Message
     
    They would need more met coal to make coke coal. That actually be good for ANR met coal prices.
    19 Dec 2012, 01:50 PM Reply Like
  • J. Sheehan
    , contributor
    Comments (727) | Send Message
     
    I've been killing it this year with coal. Probably increased my portfolio by 20% playing coal options. I closed out my ANR calls yesterday, and still holding on to ACI jan 9 calls. I am definitely not looking to get short either. Only about 15% of my coal trades have been short - the bulk of which was right before the election. Generally, I don't like shorting things just because I don't like the idea of limited profits. Plus, the volatility is so high that you can get (and I have been) burned so fast if you are short, especially with ANR.

     

    Honestly, I take any news from China with a grain of salt. Really hard for me to trust anything that comes from there.
    19 Dec 2012, 01:57 PM Reply Like
  • kokarov
    , contributor
    Comments (2) | Send Message
     
    After one positive news about coal there are few negative to follow! Shorts still find a way to manipulate the sector. This will end soon! Coal(met coal) will be one of the best plays in 2013
    19 Dec 2012, 02:25 PM Reply Like
  • Mark Anthony
    , contributor
    Comments (3601) | Send Message
     
    What?

     

    That's purely fabricated rumor in the first place.

     

    China is now the world's LARGEST coal importer and growing fast. China exports very little coal now.

     

    Even back a few years back when China exported coal, there was NEVER a 40% tariff on coal export. China would not be able to export any thing at all at 40% tariff. That is an obscenely high tariff rate. I don't think that kind of export tariff was ever imposed in any thing at all that China ever exported.

     

    Who made up that rumor?
    19 Dec 2012, 04:14 PM Reply Like
  • mmritas
    , contributor
    Comments (23) | Send Message
     
    This news actually was mention in September. I did some research. It looks like it is true. They do this to compete with the Russians. But there is not alot of export. This may cause alot of export.
    20 Dec 2012, 12:10 AM Reply Like
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