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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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Saturday, 24 October 09
NTPC SEEKS ALTERNATE COAL SUPPLY FOR KAHALGAON
State-run NTPC is looking at alternate sources of coal to fire its Kahalgaon (Bihar) and Farakka (West Bengal) and power stations, which are facing ...
Saturday, 24 October 09
ADANI, MMTC IN RACE TO SUPPLY COAL TO GSECL
Business-Standard reported that, as many as five companies are in fray to supply 15 lakh (1.5 million) metric tonnes of non-coking steam (ther ...
Saturday, 24 October 09
INDONESIA STATE POWER FIRM PLANS TO DELAY COAL SUPPLIES
Indonesia's state-controlled electricity company is negotiating with two coal producing firms to delay plans to supply coal to a power plant in Wes ...
Friday, 23 October 09
MONGOLIA LISTS 8 POTENTIAL BIDDERS FOR COAL PROJECT
Reuters reported that, Mongolia has shortlisted eight potential partners for its huge Tavan Tolgoi coking coal project, according to Temuulen Ganzor ...
Friday, 23 October 09
2010 WILL BE 'BRIDGE YEAR' FOR COAL - CONSOL CHIEF
Mining Weekly reported that, After a difficult 2009, 2010 will likely be a “bridge” year for the US coal industry, followed by improved ...
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- Australian Commodity Traders Exchange
- Semirara Mining Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Oldendorff Carriers - Singapore
- White Energy Company Limited
- European Bulk Services B.V. - Netherlands
- VISA Power Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bahari Cakrawala Sebuku - Indonesia
- Karaikal Port Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Parry Sugars Refinery, India
- Pendopo Energi Batubara - Indonesia
- Barasentosa Lestari - Indonesia
- Metalloyd Limited - United Kingdom
- Wood Mackenzie - Singapore
- Ministry of Transport, Egypt
- Sree Jayajothi Cements Limited - India
- Toyota Tsusho Corporation, Japan
- Agrawal Coal Company - India
- Indonesian Coal Mining Association
- LBH Netherlands Bv - Netherlands
- Borneo Indobara - Indonesia
- Africa Commodities Group - South Africa
- Formosa Plastics Group - Taiwan
- Global Green Power PLC Corporation, Philippines
- Petron Corporation, Philippines
- The Treasury - Australian Government
- Interocean Group of Companies - India
- Ambuja Cements Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- MS Steel International - UAE
- Kapuas Tunggal Persada - Indonesia
- Australian Coal Association
- Bukit Baiduri Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Mercator Lines Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Thai Mozambique Logistica
- Mintek Dendrill Indonesia
- Kideco Jaya Agung - Indonesia
- Price Waterhouse Coopers - Russia
- Sarangani Energy Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- Minerals Council of Australia
- Planning Commission, India
- Rio Tinto Coal - Australia
- Miang Besar Coal Terminal - Indonesia
- Anglo American - United Kingdom
- Banpu Public Company Limited - Thailand
- Sojitz Corporation - Japan
- Krishnapatnam Port Company Ltd. - India
- Merrill Lynch Commodities Europe
- Singapore Mercantile Exchange
- Commonwealth Bank - Australia
- Standard Chartered Bank - UAE
- Baramulti Group, Indonesia
- SMC Global Power, Philippines
- Rashtriya Ispat Nigam Limited - India
- Meenaskhi Energy Private Limited - India
- Chamber of Mines of South Africa
- Orica Australia Pty. Ltd.
- Bukit Makmur.PT - Indonesia
- Attock Cement Pakistan Limited
- Gujarat Sidhee Cement - India
- Global Coal Blending Company Limited - Australia
- Parliament of New Zealand
- Marubeni Corporation - India
- Ministry of Mines - Canada
- Mercuria Energy - Indonesia
- Jindal Steel & Power Ltd - India
- South Luzon Thermal Energy Corporation
- Straits Asia Resources Limited - Singapore
- Romanian Commodities Exchange
- Eastern Coal Council - USA
- Vizag Seaport Private Limited - India
- Billiton Holdings Pty Ltd - Australia
- Intertek Mineral Services - Indonesia
- Orica Mining Services - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Semirara Mining and Power Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- Posco Energy - South Korea
- AsiaOL BioFuels Corp., Philippines
- Makarim & Taira - Indonesia
- Aboitiz Power Corporation - Philippines
- Xindia Steels Limited - India
- Riau Bara Harum - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- ICICI Bank Limited - India
- Indian Oil Corporation Limited
- Sakthi Sugars Limited - India
- Neyveli Lignite Corporation Ltd, - India
- OPG Power Generation Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Economic Council, Georgia
- New Zealand Coal & Carbon
- Indogreen Group - Indonesia
- Tamil Nadu electricity Board
- Ministry of Finance - Indonesia
- Bhatia International Limited - India
- Electricity Authority, New Zealand
- Heidelberg Cement - Germany
- Electricity Generating Authority of Thailand
- Tata Chemicals Ltd - India
- Salva Resources Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Directorate Of Revenue Intelligence - India
- Energy Link Ltd, New Zealand
- Jaiprakash Power Ventures ltd
- Central Electricity Authority - India
- Independent Power Producers Association of India
- Simpson Spence & Young - Indonesia
- Ceylon Electricity Board - Sri Lanka
- TeaM Sual Corporation - Philippines
- Kobexindo Tractors - Indoneisa
- Vedanta Resources Plc - India
- Larsen & Toubro Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Kumho Petrochemical, South Korea
- Indika Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Latin American Coal - Colombia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GVK Power & Infra Limited - India
- Siam City Cement PLC, Thailand
- Goldman Sachs - Singapore
- Bayan Resources Tbk. - Indonesia
- Altura Mining Limited, Indonesia
- Uttam Galva Steels Limited - India
- Power Finance Corporation Ltd., India
- Central Java Power - Indonesia
- Star Paper Mills Limited - India
- Antam Resourcindo - Indonesia
- Bhoruka Overseas - Indonesia
- Bharathi Cement Corporation - India
- GN Power Mariveles Coal Plant, Philippines
- Timah Investasi Mineral - Indoneisa
- SN Aboitiz Power Inc, Philippines
- Edison Trading Spa - Italy
- Pipit Mutiara Jaya. PT, Indonesia
- Coal and Oil Company - UAE
- Iligan Light & Power Inc, Philippines
- Bhushan Steel Limited - India
- IEA Clean Coal Centre - UK
- ASAPP Information Group - India
- Samtan Co., Ltd - South Korea
- The State Trading Corporation of India Ltd
- Port Waratah Coal Services - Australia
- Siam City Cement - Thailand
- Carbofer General Trading SA - India
- Trasteel International SA, Italy
- Sinarmas Energy and Mining - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Holcim Trading Pte Ltd - Singapore
- Binh Thuan Hamico - Vietnam
- Maheswari Brothers Coal Limited - India
- Thiess Contractors Indonesia
- The University of Queensland
- Indian Energy Exchange, India
- Indo Tambangraya Megah - Indonesia
- Mjunction Services Limited - India
- Global Business Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- GMR Energy Limited - India
- London Commodity Brokers - England
- Energy Development Corp, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Savvy Resources Ltd - HongKong
- Kartika Selabumi Mining - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Kalimantan Lumbung Energi - Indonesia
- Meralco Power Generation, Philippines
- Madhucon Powers Ltd - India
- CIMB Investment Bank - Malaysia
- Aditya Birla Group - India
- Leighton Contractors Pty Ltd - Australia
- McConnell Dowell - Australia
- Gujarat Mineral Development Corp Ltd - India
- India Bulls Power Limited - India
- Medco Energi Mining Internasional
- Bulk Trading Sa - Switzerland
- Deloitte Consulting - India
- Dalmia Cement Bharat India
- GAC Shipping (India) Pvt Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Wilmar Investment Holdings
- PowerSource Philippines DevCo
- Coalindo Energy - Indonesia
- Cement Manufacturers Association - India
- Bangladesh Power Developement Board
- Kaltim Prima Coal - Indonesia
- Lanco Infratech Ltd - India
- San Jose City I Power Corp, Philippines
- Sical Logistics Limited - India
- Grasim Industreis Ltd - India
- Videocon Industries ltd - India
- Therma Luzon, Inc, Philippines
- PTC India Limited - India
- Eastern Energy - Thailand
- PetroVietnam Power Coal Import and Supply Company
- Cigading International Bulk Terminal - Indonesia
- Malabar Cements Ltd - India
- CNBM International Corporation - China
- Manunggal Multi Energi - Indonesia
- Kepco SPC Power Corporation, Philippines
- SMG Consultants - Indonesia
- Georgia Ports Authority, United States
- Bukit Asam (Persero) Tbk - Indonesia
- Renaissance Capital - South Africa
- IHS Mccloskey Coal Group - USA
- Jorong Barutama Greston.PT - Indonesia
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