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Friday, 23 October 09
CIL PRICE HIKE LIKELY TO PUSH POWER RATES UP
 Business-Standard reported that, May squeeze cement companies’ margins, but the steel sector is unlikely to be affected much.
The upward revision of coal prices by government-owned Coal India Limited (CIL), which took place last week, is likely to have a divergent impact on the fossil fuel’s primary consumers such as cement, power and steel sectors. While cement makers’ margins will be under pressure, power producers will make a move to pass on the increased burden to consumers.The three sectors account for about 72 per cent of the total coal demand in the country.
On October 16, CIL increased the price of coal from Eastern Coalfields (ECL) and Bharat Coking Coal (BCCL) by 15 per cent, while all other subsidiary companies were permitted a hike of 10 per cent. This price increase is expected to swell CIL’s net profit by approximately Rs 2,000 crore this financial year and by about Rs 4,100 crore in the following year.
However, for the consuming sectors, especially the cement industry, the increase in coal prices will squeeze profit margins at a time when prices are already low due to rapid capacity augmentation.
Despite the fact that coal accounted for around two-thirds of the power and fuel cost, and 20 per cent of the total cost for cement manufacturers, firms would be unable to pass on the hike in coal prices to end users due to the current business environment, a report by Crisil Research suggested.
“The recent coal price hike will increase the cost of cement by Rs 3-4 a bag. However, this has been absorbed by manufacturers in the short-term. In the long run, though, if conditions are right, we could pass on the cost,” Cement Manufacturers Association President and Shree Cement Managing Director HM Bangur said. For the power sector, though, the impact of the upward revision of coal prices would be neutral, as the rise in cost of fuel would be passed on by the generators.
On an average, tariffs of power plants using domestic coal as fuel are expected to increase by 3-4 per cent. In rupee terms, the tariffs are expected to increase on an average by Rs 0.06 a unit. The rise is expected to increase the tariffs for final power consumers as the price hike will be passed on, the Crisil report further stated.
With the respective regulatory authorities of each state overseeing power tariffs, generators would first have to ascertain the increase in input costs and then approach the regulator for approval.
However, with the coal mixture of each generator differing, the choice being between CIL coal and that of the imported variety, it would take sometime before power utilities decide on the actual magnitude of the increase in tariff. “But 100 per cent, we will have to pass on the cost,” an official from the RPG’s power utility CESC said.
As for the steel industry, the Crisil report indicated that the coal price hike by CIL was not expected to have a significant impact on the steel industry as non-coking coal, which was primarily used by the sector, did not account for a significant portion of the total cost of steel manufacturing, except for steel made through the sponge iron route. Moreover, the dependence of domestic steel producers on CIL is only 25-35 per cent of their total requirement due to the availability of captive mines and imports. But Visa Steel Chairman and President of the Indian Chamber of Commerce Vishambhar Saran said the ex-pit head prices of CIL were already comparable to international prices, barring the freight factor cost. “The cost of setting-up a plant is higher if one is to use domestically available coal as compared to imported coal. This is because the former is of inferior quality and consequently extra costs such as ash disposal must be counted into the total project cost,” he added.
Source: Business-Standard
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Wednesday, 11 November 09
INDIAN COAL IMPORT FROM SA IN OCTOBER
Reuters reported that India imported 2.4 million tonnes of coal from South Africa's Richards Bay Coal Terminal in October 2009, 35% of the total of ...
Wednesday, 11 November 09
INDONESIA ASKS DOMESTIC COAL FIRMS TO SET ASIDE 30PCT OF OUTPUT
Indonesian government said that it had asked domestic coal producers to set aside 30% of their output next year to meet demand from new coal fired p ...
Wednesday, 11 November 09
MINING ACQUISITIONS BECOMING MORE STRATEGIC - E&Y
Mining Weekly reported that, Although miners around the world are looking to position themselves for growth, companies are being more selective when ...
Tuesday, 10 November 09
THAI COAL MINER BANPU Q3 NET UP, BEATS FORECAST
Reuters reported that, Thailand's top coal miner, Banpu, said on Tuesday its third-quarter net earnings rose a higher-than-expected 22 percent, hel ...
Monday, 09 November 09
NAPOCOR DEFERS 50,000 T COAL TENDER
Top Philippine electricity producer National Power Corp. (Napocor) has indefinitely postponed a tender for supply of 50,000 tons of steam coal sched ...
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- The University of Queensland
- Chettinad Cement Corporation Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Jindal Steel & Power Ltd - India
- Ministry of Transport, Egypt
- Thai Mozambique Logistica
- Kohat Cement Company Ltd. - Pakistan
- Mercator Lines Limited - India
- Intertek Mineral Services - Indonesia
- Carbofer General Trading SA - India
- GAC Shipping (India) Pvt Ltd
- Directorate General of MIneral and Coal - Indonesia
- Economic Council, Georgia
- Alfred C Toepfer International GmbH - Germany
- Semirara Mining Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Siam City Cement - Thailand
- Coal and Oil Company - UAE
- Indonesian Coal Mining Association
- Meenaskhi Energy Private Limited - India
- IHS Mccloskey Coal Group - USA
- Samtan Co., Ltd - South Korea
- European Bulk Services B.V. - Netherlands
- Formosa Plastics Group - Taiwan
- Bhushan Steel Limited - India
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- Ambuja Cements Ltd - India
- TeaM Sual Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
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- Bharathi Cement Corporation - India
- PNOC Exploration Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Bukit Makmur.PT - Indonesia
- McConnell Dowell - Australia
- Latin American Coal - Colombia
- Posco Energy - South Korea
- Mintek Dendrill Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Manunggal Multi Energi - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Timah Investasi Mineral - Indoneisa
- Bank of Tokyo Mitsubishi UFJ Ltd
- India Bulls Power Limited - India
- Straits Asia Resources Limited - Singapore
- Sarangani Energy Corporation, Philippines
- Sical Logistics Limited - India
- Sindya Power Generating Company Private Ltd
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- Ministry of Finance - Indonesia
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- Orica Mining Services - Indonesia
- Trasteel International SA, Italy
- Price Waterhouse Coopers - Russia
- Bhoruka Overseas - Indonesia
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- Borneo Indobara - Indonesia
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- Directorate Of Revenue Intelligence - India
- White Energy Company Limited
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- Coalindo Energy - Indonesia
- Agrawal Coal Company - India
- Vedanta Resources Plc - India
- Edison Trading Spa - Italy
- San Jose City I Power Corp, Philippines
- PowerSource Philippines DevCo
- Interocean Group of Companies - India
- London Commodity Brokers - England
- IEA Clean Coal Centre - UK
- Karbindo Abesyapradhi - Indoneisa
- International Coal Ventures Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Electricity Generating Authority of Thailand
- Siam City Cement PLC, Thailand
- Independent Power Producers Association of India
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- Kideco Jaya Agung - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- South Luzon Thermal Energy Corporation
- Kaltim Prima Coal - Indonesia
- GVK Power & Infra Limited - India
- Bangladesh Power Developement Board
- Central Java Power - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Vijayanagar Sugar Pvt Ltd - India
- Thiess Contractors Indonesia
- Mercuria Energy - Indonesia
- Eastern Energy - Thailand
- Planning Commission, India
- Deloitte Consulting - India
- Global Coal Blending Company Limited - Australia
- Cement Manufacturers Association - India
- Riau Bara Harum - Indonesia
- Renaissance Capital - South Africa
- Gujarat Sidhee Cement - India
- OPG Power Generation Pvt Ltd - India
- New Zealand Coal & Carbon
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- PTC India Limited - India
- Toyota Tsusho Corporation, Japan
- Central Electricity Authority - India
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- Kalimantan Lumbung Energi - Indonesia
- Metalloyd Limited - United Kingdom
- Power Finance Corporation Ltd., India
- Pendopo Energi Batubara - Indonesia
- Singapore Mercantile Exchange
- Jorong Barutama Greston.PT - Indonesia
- Globalindo Alam Lestari - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Therma Luzon, Inc, Philippines
- Anglo American - United Kingdom
- Grasim Industreis Ltd - India
- Altura Mining Limited, Indonesia
- Parliament of New Zealand
- Australian Coal Association
- Heidelberg Cement - Germany
- Xindia Steels Limited - India
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- Indogreen Group - Indonesia
- CIMB Investment Bank - Malaysia
- Baramulti Group, Indonesia
- Semirara Mining and Power Corporation, Philippines
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- Eastern Coal Council - USA
- The Treasury - Australian Government
- Essar Steel Hazira Ltd - India
- Meralco Power Generation, Philippines
- SN Aboitiz Power Inc, Philippines
- Ministry of Mines - Canada
- Leighton Contractors Pty Ltd - Australia
- Wilmar Investment Holdings
- Global Green Power PLC Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Kepco SPC Power Corporation, Philippines
- Commonwealth Bank - Australia
- Jaiprakash Power Ventures ltd
- Sree Jayajothi Cements Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Larsen & Toubro Limited - India
- Dalmia Cement Bharat India
- CNBM International Corporation - China
- Bulk Trading Sa - Switzerland
- AsiaOL BioFuels Corp., Philippines
- Aboitiz Power Corporation - Philippines
- Indika Energy - Indonesia
- ICICI Bank Limited - India
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- Indian Oil Corporation Limited
- Australian Commodity Traders Exchange
- Marubeni Corporation - India
- Energy Link Ltd, New Zealand
- Wood Mackenzie - Singapore
- Holcim Trading Pte Ltd - Singapore
- Sakthi Sugars Limited - India
- Star Paper Mills Limited - India
- Bhatia International Limited - India
- Coastal Gujarat Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Orica Australia Pty. Ltd.
- Kumho Petrochemical, South Korea
- Offshore Bulk Terminal Pte Ltd, Singapore
- Petron Corporation, Philippines
- Africa Commodities Group - South Africa
- Gujarat Mineral Development Corp Ltd - India
- Maheswari Brothers Coal Limited - India
- Standard Chartered Bank - UAE
- SMG Consultants - Indonesia
- ASAPP Information Group - India
- Rio Tinto Coal - Australia
- Makarim & Taira - Indonesia
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- Chamber of Mines of South Africa
- Georgia Ports Authority, United States
- Bahari Cakrawala Sebuku - Indonesia
- Energy Development Corp, Philippines
- Rashtriya Ispat Nigam Limited - India
- Krishnapatnam Port Company Ltd. - India
- Ind-Barath Power Infra Limited - India
- Indian Energy Exchange, India
- Simpson Spence & Young - Indonesia
- Minerals Council of Australia
- MS Steel International - UAE
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Attock Cement Pakistan Limited
- LBH Netherlands Bv - Netherlands
- Goldman Sachs - Singapore
- Antam Resourcindo - Indonesia
- The State Trading Corporation of India Ltd
- Port Waratah Coal Services - Australia
- Merrill Lynch Commodities Europe
- Asmin Koalindo Tuhup - Indonesia
- VISA Power Limited - India
- Tamil Nadu electricity Board
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- SMC Global Power, Philippines
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- PetroVietnam Power Coal Import and Supply Company
- Madhucon Powers Ltd - India
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