There is a lot of good news for China domestic coal market recently. China's tariff committee on Thursday decided to end zero duty on five coal products and reintroduce most-favored nation tariffs varying from 3 percent to 6 percent, beginning Oct. 15.

The tariffs for anthracite and coking coal will be set at 3 percent, bitumite at 6 percent, and those for briquets and other coals at 5 percent.

The new tariff arrangement will limit coal imports and help struggling domestic producers. The zero duty was introduced some time ago to encourage coal imports and fill a domestic supply gap.

Wang Xunfeng, a coal analyst from Fenwei Energy-Net, said the adjustment was part of the government's support for the struggling coal industry .

According to Wang’s calculation, as an immediate result of the tariff, the cost of imported thermal coal will be 20 yuan (3.25 US dollars) higher per tonne.

The adjustment may relieve some pressure for domestic coal enterprises, as over 70 percent of them are now operating at losses, according to survey by the China National Coal Association.

To get through the hard times, major domestic coal producers recently have decided to raise prices.

Shenhua Group announced on Oct.8 that from Oct.10 all kinds of thermal coal prices will be raised at about 15 yuan/tons compared with that in September. After that, other coal companies also ready to raise the price.

In the industry view, with the up of imported coal tariff at the macroscopic level as well as the increase of domestic coal prices, the future coal market will continue to rebound.