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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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Thursday, 29 October 09
INDIA CEMENTS SET TO ACQUIRE COAL MINE IN INDONESIA
Business-Standard reported that, India Cements is set to acquire a coal mine in Indonesia for around $20 million (around Rs 100 crore). The company ...
Thursday, 29 October 09
PTC INDIA UNIT CHASES 2.5 MTPA INDONESIAN COAL
Reuters reported that, PTC Energy is in talks with an Indonesian firm to source 2.5 million tonnes per annum (MTPA) coal for its 350-400 MW power to ...
Thursday, 29 October 09
CHINA MAY SEEK THERMAL COAL ELSEWHERE IF AUSTRALIAN EXPORT COSTS RISE, SAYS REPORT
The Australian reported that, CHINA is likely to turn to alternative markets for thermal coal if the cost and availability of Australia's exports a ...
Thursday, 29 October 09
CURRENCIES, ASIA DEMAND TO LIFT EUROPE COAL PRICE
Supportive currency movements and strong Asian demand mean the price of coal delivered into Europe is poised to rise more than 30 percent to above $ ...
Wednesday, 28 October 09
AUSTRALIAN POWER STATION COAL PRICE TOPPED USD 73 A TONNE
Reuters reported that prices of power station coal in Australia, a benchmark for Asia, crept up for the fourth week and topped USD 73 a tonne, as a ...
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- Indika Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- GAC Shipping (India) Pvt Ltd
- MS Steel International - UAE
- Bhatia International Limited - India
- International Coal Ventures Pvt Ltd - India
- Dalmia Cement Bharat India
- Globalindo Alam Lestari - Indonesia
- PowerSource Philippines DevCo
- Leighton Contractors Pty Ltd - Australia
- Mintek Dendrill Indonesia
- CNBM International Corporation - China
- Marubeni Corporation - India
- Coalindo Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Petron Corporation, Philippines
- Siam City Cement - Thailand
- IEA Clean Coal Centre - UK
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- Star Paper Mills Limited - India
- Alfred C Toepfer International GmbH - Germany
- Renaissance Capital - South Africa
- Australian Coal Association
- Uttam Galva Steels Limited - India
- Formosa Plastics Group - Taiwan
- ASAPP Information Group - India
- Miang Besar Coal Terminal - Indonesia
- Port Waratah Coal Services - Australia
- Africa Commodities Group - South Africa
- India Bulls Power Limited - India
- White Energy Company Limited
- Asmin Koalindo Tuhup - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Banpu Public Company Limited - Thailand
- Metalloyd Limited - United Kingdom
- Bukit Baiduri Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Gujarat Electricity Regulatory Commission - India
- New Zealand Coal & Carbon
- Planning Commission, India
- Singapore Mercantile Exchange
- Energy Link Ltd, New Zealand
- Baramulti Group, Indonesia
- LBH Netherlands Bv - Netherlands
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Goldman Sachs - Singapore
- Parliament of New Zealand
- Electricity Generating Authority of Thailand
- Bulk Trading Sa - Switzerland
- Altura Mining Limited, Indonesia
- Toyota Tsusho Corporation, Japan
- Sojitz Corporation - Japan
- Aditya Birla Group - India
- AsiaOL BioFuels Corp., Philippines
- Central Java Power - Indonesia
- Bayan Resources Tbk. - Indonesia
- Orica Australia Pty. Ltd.
- Independent Power Producers Association of India
- Pendopo Energi Batubara - Indonesia
- Straits Asia Resources Limited - Singapore
- Minerals Council of Australia
- Sindya Power Generating Company Private Ltd
- Trasteel International SA, Italy
- Eastern Energy - Thailand
- Essar Steel Hazira Ltd - India
- Georgia Ports Authority, United States
- Bhushan Steel Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Global Green Power PLC Corporation, Philippines
- Wilmar Investment Holdings
- Kaltim Prima Coal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indo Tambangraya Megah - Indonesia
- Power Finance Corporation Ltd., India
- Energy Development Corp, Philippines
- Antam Resourcindo - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Barasentosa Lestari - Indonesia
- Indian Energy Exchange, India
- Meralco Power Generation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Tamil Nadu electricity Board
- Semirara Mining Corp, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Heidelberg Cement - Germany
- Parry Sugars Refinery, India
- Semirara Mining and Power Corporation, Philippines
- Vedanta Resources Plc - India
- GVK Power & Infra Limited - India
- Manunggal Multi Energi - Indonesia
- Grasim Industreis Ltd - India
- Kumho Petrochemical, South Korea
- Price Waterhouse Coopers - Russia
- Rashtriya Ispat Nigam Limited - India
- Vizag Seaport Private Limited - India
- Indian Oil Corporation Limited
- Coastal Gujarat Power Limited - India
- Therma Luzon, Inc, Philippines
- Attock Cement Pakistan Limited
- Latin American Coal - Colombia
- Makarim & Taira - Indonesia
- Orica Mining Services - Indonesia
- Malabar Cements Ltd - India
- Ministry of Transport, Egypt
- San Jose City I Power Corp, Philippines
- Jindal Steel & Power Ltd - India
- Binh Thuan Hamico - Vietnam
- Pipit Mutiara Jaya. PT, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bhoruka Overseas - Indonesia
- Edison Trading Spa - Italy
- Bahari Cakrawala Sebuku - Indonesia
- Xindia Steels Limited - India
- Ambuja Cements Ltd - India
- Ministry of Mines - Canada
- Cement Manufacturers Association - India
- Mercator Lines Limited - India
- Global Business Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Posco Energy - South Korea
- Ind-Barath Power Infra Limited - India
- McConnell Dowell - Australia
- GMR Energy Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Videocon Industries ltd - India
- CIMB Investment Bank - Malaysia
- Indogreen Group - Indonesia
- Bharathi Cement Corporation - India
- Iligan Light & Power Inc, Philippines
- Intertek Mineral Services - Indonesia
- Thai Mozambique Logistica
- Thiess Contractors Indonesia
- Jaiprakash Power Ventures ltd
- Siam City Cement PLC, Thailand
- Global Coal Blending Company Limited - Australia
- Central Electricity Authority - India
- Merrill Lynch Commodities Europe
- Borneo Indobara - Indonesia
- VISA Power Limited - India
- Riau Bara Harum - Indonesia
- Chettinad Cement Corporation Ltd - India
- Meenaskhi Energy Private Limited - India
- Mercuria Energy - Indonesia
- Gujarat Sidhee Cement - India
- Carbofer General Trading SA - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sical Logistics Limited - India
- Jorong Barutama Greston.PT - Indonesia
- The Treasury - Australian Government
- PTC India Limited - India
- Medco Energi Mining Internasional
- Eastern Coal Council - USA
- TeaM Sual Corporation - Philippines
- South Luzon Thermal Energy Corporation
- Commonwealth Bank - Australia
- Coal and Oil Company - UAE
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indonesian Coal Mining Association
- Ceylon Electricity Board - Sri Lanka
- Rio Tinto Coal - Australia
- OPG Power Generation Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Ministry of Finance - Indonesia
- London Commodity Brokers - England
- Sarangani Energy Corporation, Philippines
- Anglo American - United Kingdom
- PetroVietnam Power Coal Import and Supply Company
- Timah Investasi Mineral - Indoneisa
- Chamber of Mines of South Africa
- Australian Commodity Traders Exchange
- GN Power Mariveles Coal Plant, Philippines
- Standard Chartered Bank - UAE
- Bukit Makmur.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- Oldendorff Carriers - Singapore
- Bangladesh Power Developement Board
- Kapuas Tunggal Persada - Indonesia
- Kartika Selabumi Mining - Indonesia
- Deloitte Consulting - India
- Wood Mackenzie - Singapore
- The University of Queensland
- Holcim Trading Pte Ltd - Singapore
- SMG Consultants - Indonesia
- Kideco Jaya Agung - Indonesia
- Kepco SPC Power Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- Madhucon Powers Ltd - India
- Sakthi Sugars Limited - India
- SN Aboitiz Power Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Tata Chemicals Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Electricity Authority, New Zealand
- Economic Council, Georgia
- Directorate Of Revenue Intelligence - India
- Lanco Infratech Ltd - India
- Romanian Commodities Exchange
- ICICI Bank Limited - India
- Savvy Resources Ltd - HongKong
- Samtan Co., Ltd - South Korea
- Neyveli Lignite Corporation Ltd, - India
- Karaikal Port Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Simpson Spence & Young - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Interocean Group of Companies - India
- Billiton Holdings Pty Ltd - Australia
- SMC Global Power, Philippines
- Larsen & Toubro Limited - India
- Kobexindo Tractors - Indoneisa
- Mjunction Services Limited - India
- Agrawal Coal Company - India
- Sree Jayajothi Cements Limited - India
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