We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Monday, 27 July 09
COKING COAL, IRON-ORE LIKELY TO BENEFIT NON-INTEGRATED STEEL PRODUCERS
 Economictimes reported that, The second half of the financial year 2008-09 was one of the toughest periods for steel companies, especially the non-integrated players without access to captive sources of raw material. The double whammy of falling sales realisation and higher input costs pulled down operating profit margins significantly.
The non-integrated producers continued to pay higher raw material prices as a part of long-term contracts signed during the beginning of the year. However, as old contracts have come to an end and new ones are being signed, these companies are breathing a sigh of relief.
The new contracts have taken into consideration the current market realty. The prices of two key inputs –
–iron ore and coking coal – have come down more than 50% in the spot market. As per reports, steel firms have signed long-term contracts for coking coal at around $110-120 per tonne and iron ore at $65-70 per tonne.
The new contract prices mark a decline of around two-thirds and one-third from their yearago levels for coking coal and iron ore, respectively. Steel prices have also fallen sharply during the same period. Because of these developments, it is essential to understand the impact of the new prices on the profitability of major steel producers, especially the non-integrated ones, for the next few quarters.
Steel prices in a number of countries have been regulated in past year, and India is no exception. Current international steel prices are 50% lower than year-ago levels and in India the decline has been 25-35 %. Accordingly, depending on the company’s market (domestic and overseas) exposure, the impact on profitability of new long-term contract will vary.
Going by international prices, a company with an operating margin of around 25% last year is expected to see a contraction in margin by around 1,000-1 ,300 basis points compared to year-ago levels. It means the fall in steel product prices outweighs the drop in input costs. The only solace for such a company is the improvement in margin from the previous two quarters. Sequentially, there could be an improvement of more than 500-1 ,000 basis points in the operating margin to 10-15 %.
For instance, many international steel producers reported either losses or a 5-8 % operating margin during the Mar ’09 quarter. Such companies are definitely going to see better days ahead. In India, Tata Steel, which has significant operations in Europe, is going to be one of the key beneficiaries. The operating margin of Corus, however, is not expected to exceed 2%. The new pricing will have a bigger impact on domestic companies.
Domestic steel prices have not fallen much due to government intervention and relatively higher domestic demand. Also, coking coal, which accounted for around two-thirds of raw material cost last year, has witnessed a much sharper decline in prices compared to iron ore. And most of the coking coal consumed in India is imported and its pricing depends more on the international environment rather than the domestic market. Hence new coking coal contract prices will capture the poor international market conditions.
The benefit of new long-term contracts for domestic players would depend on factors such as the extent of dependence on external suppliers for raw materials, actual contract prices and the month from which the contract became effective, among others. Higher the dependence on external suppliers, more the benefit.
Of the top five listed steel companies, JSW Steel and Ispat Industries are likely to benefit the most. The average operating margin from the September quarter onwards is expected to expand by around 1,000-1,500 basis points compared to the Mar ’09 quarter. The June quarter, however, will see a partial impact, depending on when the new contracts came into force.
Other top players that are likely to benefit are Steel Authority of India (Sail) and Jindal Steel & Power. Both of them are self-sufficient in iron ore but depend on outside suppliers for coking coal. The positive impact on the operating margin of these companies on account of the new prices would not be more than 500 basis points though.
Source: Economic Times - India Times
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Thursday, 06 August 09
CHINA JULY COAL IMPORTS AT 9.5 MLN T, DEMAND FIRM
* Coal imports at key ports in July 2.8 times year-ago levels
* July coal imports down nearly 40 percent from June
* China still buying overseas c ...
Thursday, 06 August 09
CASES FILED AGAINST ESSAR ALGOMA OVER TERMINATED COAL SHIPMENTS
Steel Guru reported that, It is reported that units of International Coal Group Inc and Arch Coal Inc have filed federal lawsuits in the same court ...
Thursday, 06 August 09
COMPULSORY MINE RECLAMATION PROPOSED FOR A MINING'S LIFETIME
Tambang reported that, A data from the Forestry Ministry showed that almost 65 percent of mining activities operated under contract of work, c ...
Thursday, 06 August 09
MINING PERMITS FOR THOSE COMMITTED TO SMELTER DEVELOPMENT ONLY
Tambang reported tht, Concrete and tangible endeavors are key to guarantee the attainment of added value from mining sector. The Indonesian Ministry ...
Thursday, 06 August 09
PRESS RELEASE - CZECH COAL CONTESTS THE J&T AND IPO MERGER
Prague, 3 August 2009 - The Czech Coal Group filed today objections to the proposed merger of the J&T Group and International Power Opatovice (I ...
|
|
|
Showing 6536 to 6540 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Attock Cement Pakistan Limited
- Semirara Mining and Power Corporation, Philippines
- Larsen & Toubro Limited - India
- PTC India Limited - India
- Petron Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Bukit Asam (Persero) Tbk - Indonesia
- Sarangani Energy Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Directorate Of Revenue Intelligence - India
- Ministry of Mines - Canada
- Port Waratah Coal Services - Australia
- Timah Investasi Mineral - Indoneisa
- Baramulti Group, Indonesia
- Wood Mackenzie - Singapore
- Aditya Birla Group - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Videocon Industries ltd - India
- Simpson Spence & Young - Indonesia
- Indian Oil Corporation Limited
- London Commodity Brokers - England
- Power Finance Corporation Ltd., India
- LBH Netherlands Bv - Netherlands
- Merrill Lynch Commodities Europe
- GMR Energy Limited - India
- Central Java Power - Indonesia
- Coalindo Energy - Indonesia
- PowerSource Philippines DevCo
- Bangladesh Power Developement Board
- Bharathi Cement Corporation - India
- Vedanta Resources Plc - India
- Vijayanagar Sugar Pvt Ltd - India
- White Energy Company Limited
- The Treasury - Australian Government
- Intertek Mineral Services - Indonesia
- Manunggal Multi Energi - Indonesia
- Kideco Jaya Agung - Indonesia
- Sree Jayajothi Cements Limited - India
- Bukit Baiduri Energy - Indonesia
- Standard Chartered Bank - UAE
- Star Paper Mills Limited - India
- Tata Chemicals Ltd - India
- PNOC Exploration Corporation - Philippines
- Mjunction Services Limited - India
- The University of Queensland
- Global Business Power Corporation, Philippines
- Uttam Galva Steels Limited - India
- Oldendorff Carriers - Singapore
- Sindya Power Generating Company Private Ltd
- Electricity Authority, New Zealand
- Xindia Steels Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Kartika Selabumi Mining - Indonesia
- Chamber of Mines of South Africa
- Georgia Ports Authority, United States
- AsiaOL BioFuels Corp., Philippines
- Sojitz Corporation - Japan
- Energy Link Ltd, New Zealand
- Romanian Commodities Exchange
- Latin American Coal - Colombia
- Savvy Resources Ltd - HongKong
- Kohat Cement Company Ltd. - Pakistan
- Global Green Power PLC Corporation, Philippines
- Salva Resources Pvt Ltd - India
- MS Steel International - UAE
- Mercuria Energy - Indonesia
- Meralco Power Generation, Philippines
- ICICI Bank Limited - India
- Bhatia International Limited - India
- Gujarat Mineral Development Corp Ltd - India
- International Coal Ventures Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Rio Tinto Coal - Australia
- Krishnapatnam Port Company Ltd. - India
- Bhoruka Overseas - Indonesia
- Energy Development Corp, Philippines
- San Jose City I Power Corp, Philippines
- Barasentosa Lestari - Indonesia
- Altura Mining Limited, Indonesia
- Straits Asia Resources Limited - Singapore
- South Luzon Thermal Energy Corporation
- Tamil Nadu electricity Board
- Planning Commission, India
- Jorong Barutama Greston.PT - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Binh Thuan Hamico - Vietnam
- Kepco SPC Power Corporation, Philippines
- CNBM International Corporation - China
- Therma Luzon, Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Indo Tambangraya Megah - Indonesia
- Indogreen Group - Indonesia
- Thai Mozambique Logistica
- Leighton Contractors Pty Ltd - Australia
- Asmin Koalindo Tuhup - Indonesia
- Orica Australia Pty. Ltd.
- Kalimantan Lumbung Energi - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Parry Sugars Refinery, India
- Miang Besar Coal Terminal - Indonesia
- Marubeni Corporation - India
- Agrawal Coal Company - India
- Wilmar Investment Holdings
- Billiton Holdings Pty Ltd - Australia
- Goldman Sachs - Singapore
- Vizag Seaport Private Limited - India
- Samtan Co., Ltd - South Korea
- Maharashtra Electricity Regulatory Commission - India
- Minerals Council of Australia
- Dalmia Cement Bharat India
- Sical Logistics Limited - India
- Interocean Group of Companies - India
- Formosa Plastics Group - Taiwan
- Trasteel International SA, Italy
- Coastal Gujarat Power Limited - India
- Chettinad Cement Corporation Ltd - India
- Karaikal Port Pvt Ltd - India
- Orica Mining Services - Indonesia
- Siam City Cement - Thailand
- Australian Commodity Traders Exchange
- Toyota Tsusho Corporation, Japan
- Independent Power Producers Association of India
- Semirara Mining Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- Carbofer General Trading SA - India
- Jindal Steel & Power Ltd - India
- Economic Council, Georgia
- Central Electricity Authority - India
- Sakthi Sugars Limited - India
- Makarim & Taira - Indonesia
- Heidelberg Cement - Germany
- OPG Power Generation Pvt Ltd - India
- Indian Energy Exchange, India
- Price Waterhouse Coopers - Russia
- Indika Energy - Indonesia
- Kaltim Prima Coal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- SN Aboitiz Power Inc, Philippines
- Renaissance Capital - South Africa
- Globalindo Alam Lestari - Indonesia
- Edison Trading Spa - Italy
- Thiess Contractors Indonesia
- IHS Mccloskey Coal Group - USA
- Metalloyd Limited - United Kingdom
- Pipit Mutiara Jaya. PT, Indonesia
- Kapuas Tunggal Persada - Indonesia
- SMG Consultants - Indonesia
- Maheswari Brothers Coal Limited - India
- Posco Energy - South Korea
- IEA Clean Coal Centre - UK
- Meenaskhi Energy Private Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Cigading International Bulk Terminal - Indonesia
- Deloitte Consulting - India
- TeaM Sual Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Rashtriya Ispat Nigam Limited - India
- Ceylon Electricity Board - Sri Lanka
- Pendopo Energi Batubara - Indonesia
- Madhucon Powers Ltd - India
- Bukit Makmur.PT - Indonesia
- GAC Shipping (India) Pvt Ltd
- Borneo Indobara - Indonesia
- The State Trading Corporation of India Ltd
- Ministry of Finance - Indonesia
- Kumho Petrochemical, South Korea
- European Bulk Services B.V. - Netherlands
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Anglo American - United Kingdom
- Gujarat Sidhee Cement - India
- Karbindo Abesyapradhi - Indoneisa
- Ind-Barath Power Infra Limited - India
- Australian Coal Association
- Kobexindo Tractors - Indoneisa
- Ambuja Cements Ltd - India
- Indonesian Coal Mining Association
- McConnell Dowell - Australia
- Gujarat Electricity Regulatory Commission - India
- Electricity Generating Authority of Thailand
- Banpu Public Company Limited - Thailand
- ASAPP Information Group - India
- Cement Manufacturers Association - India
- Bulk Trading Sa - Switzerland
- Bhushan Steel Limited - India
- Ministry of Transport, Egypt
- Eastern Energy - Thailand
- Coal and Oil Company - UAE
- Singapore Mercantile Exchange
- Eastern Coal Council - USA
- Mercator Lines Limited - India
- Riau Bara Harum - Indonesia
- Aboitiz Power Corporation - Philippines
- Directorate General of MIneral and Coal - Indonesia
- Siam City Cement PLC, Thailand
- Commonwealth Bank - Australia
- Mintek Dendrill Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Bahari Cakrawala Sebuku - Indonesia
- Iligan Light & Power Inc, Philippines
- India Bulls Power Limited - India
- CIMB Investment Bank - Malaysia
- Malabar Cements Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Africa Commodities Group - South Africa
- SMC Global Power, Philippines
- VISA Power Limited - India
- New Zealand Coal & Carbon
- GN Power Mariveles Coal Plant, Philippines
- Lanco Infratech Ltd - India
- Antam Resourcindo - Indonesia
- Medco Energi Mining Internasional
- Global Coal Blending Company Limited - Australia
- Parliament of New Zealand
- Grasim Industreis Ltd - India
- GVK Power & Infra Limited - India
|
| |
| |
|
