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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, 28 October 09
MIDDLE EAST COAL EYEING INDIAN POWER PLANTS IN EXCHANGE FOR LONG TERM COAL SUPPLY
Reuters reported that UAE's Middle East Coal is in talks to buy equity stakes in India's power plants in exchange for long term coal supply.
ME ...
Wednesday, 28 October 09
INVESTMENT IN MINING SECTOR HAMPERED BY LATE REGULATIONS
The Jakarta Post reported that, Indonesia may have to wait for a potential massive inflow of new investment into the mining sector due to delays in ...
Tuesday, 27 October 09
CHINA'S SEPT. COAL IMPORTS RISE AS ECONOMY RECOVERS
Bloomberg reported that, China, the world’s largest coal user and producer, increased imports of the fuel in September to meet rising domest ...
Monday, 26 October 09
DARWIN EYES PRIVATE INVESTMENT
The Jakarta Post reported that, the new energy and ministerial resources minister, Darwin Zahedy Saleh, has set his sights on accelerating the reali ...
Sunday, 25 October 09
THE FUTURE FREIGHT MARKET IS EXPECTED TO HAVE POSITIVE DIRECTION - VISTAAR
COALspot.com (Singapore): According to Vistaar Shipping an experienced ship operator in Singapore, the BDI shot up this week (19-24 October) by abou ...
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- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Ambuja Cements Ltd - India
- Bukit Baiduri Energy - Indonesia
- Borneo Indobara - Indonesia
- OPG Power Generation Pvt Ltd - India
- Economic Council, Georgia
- GN Power Mariveles Coal Plant, Philippines
- Tamil Nadu electricity Board
- Simpson Spence & Young - Indonesia
- Timah Investasi Mineral - Indoneisa
- Bahari Cakrawala Sebuku - Indonesia
- Sakthi Sugars Limited - India
- Bhoruka Overseas - Indonesia
- Indonesian Coal Mining Association
- European Bulk Services B.V. - Netherlands
- Globalindo Alam Lestari - Indonesia
- Merrill Lynch Commodities Europe
- Kobexindo Tractors - Indoneisa
- Global Business Power Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Directorate Of Revenue Intelligence - India
- Tata Chemicals Ltd - India
- Standard Chartered Bank - UAE
- Indika Energy - Indonesia
- Thai Mozambique Logistica
- Power Finance Corporation Ltd., India
- Indian Oil Corporation Limited
- Bulk Trading Sa - Switzerland
- IEA Clean Coal Centre - UK
- Mintek Dendrill Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- VISA Power Limited - India
- CIMB Investment Bank - Malaysia
- Petron Corporation, Philippines
- Siam City Cement - Thailand
- Central Electricity Authority - India
- Independent Power Producers Association of India
- Meenaskhi Energy Private Limited - India
- Intertek Mineral Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- ICICI Bank Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Mercator Lines Limited - India
- Jindal Steel & Power Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Mjunction Services Limited - India
- GVK Power & Infra Limited - India
- Malabar Cements Ltd - India
- Africa Commodities Group - South Africa
- Siam City Cement PLC, Thailand
- Leighton Contractors Pty Ltd - Australia
- TeaM Sual Corporation - Philippines
- Baramulti Group, Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Finance - Indonesia
- Marubeni Corporation - India
- Heidelberg Cement - Germany
- Energy Development Corp, Philippines
- Orica Australia Pty. Ltd.
- Riau Bara Harum - Indonesia
- Dalmia Cement Bharat India
- Georgia Ports Authority, United States
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coal and Oil Company - UAE
- White Energy Company Limited
- LBH Netherlands Bv - Netherlands
- GMR Energy Limited - India
- The State Trading Corporation of India Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sojitz Corporation - Japan
- Planning Commission, India
- Binh Thuan Hamico - Vietnam
- London Commodity Brokers - England
- Formosa Plastics Group - Taiwan
- Kohat Cement Company Ltd. - Pakistan
- Price Waterhouse Coopers - Russia
- Essar Steel Hazira Ltd - India
- Singapore Mercantile Exchange
- Renaissance Capital - South Africa
- SN Aboitiz Power Inc, Philippines
- Videocon Industries ltd - India
- Kartika Selabumi Mining - Indonesia
- Uttam Galva Steels Limited - India
- Ministry of Transport, Egypt
- Rio Tinto Coal - Australia
- Sree Jayajothi Cements Limited - India
- The University of Queensland
- Vijayanagar Sugar Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Bhushan Steel Limited - India
- Kideco Jaya Agung - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Kalimantan Lumbung Energi - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Makarim & Taira - Indonesia
- Indian Energy Exchange, India
- India Bulls Power Limited - India
- Gujarat Electricity Regulatory Commission - India
- Medco Energi Mining Internasional
- Interocean Group of Companies - India
- Grasim Industreis Ltd - India
- Kaltim Prima Coal - Indonesia
- Samtan Co., Ltd - South Korea
- South Luzon Thermal Energy Corporation
- SMG Consultants - Indonesia
- Lanco Infratech Ltd - India
- Eastern Energy - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Antam Resourcindo - Indonesia
- Savvy Resources Ltd - HongKong
- MS Steel International - UAE
- Barasentosa Lestari - Indonesia
- Energy Link Ltd, New Zealand
- Ind-Barath Power Infra Limited - India
- Semirara Mining Corp, Philippines
- Agrawal Coal Company - India
- Meralco Power Generation, Philippines
- Aditya Birla Group - India
- Electricity Generating Authority of Thailand
- Global Coal Blending Company Limited - Australia
- Alfred C Toepfer International GmbH - Germany
- Trasteel International SA, Italy
- Jaiprakash Power Ventures ltd
- Sinarmas Energy and Mining - Indonesia
- Anglo American - United Kingdom
- PowerSource Philippines DevCo
- Sindya Power Generating Company Private Ltd
- CNBM International Corporation - China
- Billiton Holdings Pty Ltd - Australia
- Altura Mining Limited, Indonesia
- Sarangani Energy Corporation, Philippines
- SMC Global Power, Philippines
- Attock Cement Pakistan Limited
- Central Java Power - Indonesia
- Port Waratah Coal Services - Australia
- Minerals Council of Australia
- Star Paper Mills Limited - India
- Parry Sugars Refinery, India
- Maheswari Brothers Coal Limited - India
- Bhatia International Limited - India
- Parliament of New Zealand
- McConnell Dowell - Australia
- Karaikal Port Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Pendopo Energi Batubara - Indonesia
- Bukit Makmur.PT - Indonesia
- Goldman Sachs - Singapore
- Wood Mackenzie - Singapore
- Krishnapatnam Port Company Ltd. - India
- Wilmar Investment Holdings
- Bharathi Cement Corporation - India
- Latin American Coal - Colombia
- Carbofer General Trading SA - India
- Iligan Light & Power Inc, Philippines
- Xindia Steels Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Therma Luzon, Inc, Philippines
- San Jose City I Power Corp, Philippines
- Commonwealth Bank - Australia
- Mercuria Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Gujarat Sidhee Cement - India
- Romanian Commodities Exchange
- Orica Mining Services - Indonesia
- Vizag Seaport Private Limited - India
- Coalindo Energy - Indonesia
- Larsen & Toubro Limited - India
- Rashtriya Ispat Nigam Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Cement Manufacturers Association - India
- Manunggal Multi Energi - Indonesia
- Australian Commodity Traders Exchange
- Indo Tambangraya Megah - Indonesia
- Kepco SPC Power Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Thiess Contractors Indonesia
- Metalloyd Limited - United Kingdom
- Edison Trading Spa - Italy
- GAC Shipping (India) Pvt Ltd
- Madhucon Powers Ltd - India
- Posco Energy - South Korea
- Straits Asia Resources Limited - Singapore
- Bangladesh Power Developement Board
- PTC India Limited - India
- Electricity Authority, New Zealand
- Salva Resources Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Ministry of Mines - Canada
- Kumho Petrochemical, South Korea
- Holcim Trading Pte Ltd - Singapore
- International Coal Ventures Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Chamber of Mines of South Africa
- Vedanta Resources Plc - India
- Australian Coal Association
- Global Green Power PLC Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Sical Logistics Limited - India
- Eastern Coal Council - USA
- PNOC Exploration Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Banpu Public Company Limited - Thailand
- New Zealand Coal & Carbon
- Toyota Tsusho Corporation, Japan
- The Treasury - Australian Government
- Offshore Bulk Terminal Pte Ltd, Singapore
- AsiaOL BioFuels Corp., Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Indogreen Group - Indonesia
- Oldendorff Carriers - Singapore
- Deloitte Consulting - India
- Chettinad Cement Corporation Ltd - India
- Ceylon Electricity Board - Sri Lanka
- ASAPP Information Group - India
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