Insight
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3 Pages

What's next for China's coal sector: will lowering VAT help domestic miners?


What's next for China's coal sector: will lowering VAT help domestic miners?

Report summary

Lowering VAT is likely to be the next announcement from China's government to support domestic coal producers. Adjustments to VAT have a marginal impact on China's coal sector as this step does not address fundamental problem of weak demand and oversupply.

What's included?

This report includes 1 file(s)

  • What's next for China's coal sector: will lowering VAT help domestic miners? PDF - 333.12 KB 3 Pages, 1 Tables, 2 Figures

Description

This Coal Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

Participants, suppliers and advisors can use it to look at the trends, risks and issues within the coal industry and gain an alternative point of view when making decisions.

Wood Mackenzie is the only coal industry service provider that offers a market outlook integrated with other sector analyses, including macroeconomics, coal supply, steel markets and gas and power markets.

Our coal analysts are based in the markets they analyse. They work with objective, proprietary data to help you maximise your current and future decision making. From market dynamics to trade patterns, we give you confidence in your strategic planning.

  • Executive summary
  • VAT: the next step for China's government supports
  • VAT will provide minimal support to domestic suppliers
  • Lower VAT will not impact imports
  • Conclusions

In this report there are 3 tables or charts, including:

  • Executive summary
  • VAT: the next step for China's government supports
  • VAT will provide minimal support to domestic suppliers
    • Operating margin with 17% VAT– domestic thermal supply to coastal China at RMB430/t FOB Qinhuangdao (5500 kcal NAR energy adjusted)
    • Operating margin with 13% VAT– domestic thermal supply to coastal China at RMB430/t FOB Qinhuangdao (5500 kcal NAR energy adjusted)
  • Lower VAT will not impact imports
    • Delivered cost comparison of domestic and imports in south China (RMB/t)
  • Conclusions
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