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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, 22 October 09
2ND UNITED INDONESIA CABINET UNVEILED
The Jakarta Post reported that, President Susilo Bambang Yudhoyono announced his second United Indonesia Cabinet on Wednesday night, comprising 34 m ...
Thursday, 22 October 09
PEABODY SET TO TAP ASIAN DEMAND FOR COAL
The Australian reported that, US coal giant Peabody Energy plans to double its Queensland and NSW coal exports in the next five years, as it looks t ...
Wednesday, 21 October 09
INDONESIA POWER FIRM SEEKS TO DEFER COAL SUPPLIES
Reuters reported that, Indonesia's state power firm is negotiating with two coal producers, including a unit of PT Bumi Resources Tbk, to defer a c ...
Wednesday, 21 October 09
MINING REGULATION GENERATES CONFUSION IN INDONESIA
The Jakarta Globe reported that, Mining industry representatives said on Friday they were confused by a recently issued regulation restricting the w ...
Wednesday, 21 October 09
LAW ACCOMMODATES NATIONAL AND INVESTOR INTERESTS
COALspot.com (Indonesia): According to ESDM, the government has issued five Lawson the energy and mineral resources sector. These laws will prioriti ...
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- Planning Commission, India
- Toyota Tsusho Corporation, Japan
- Gujarat Electricity Regulatory Commission - India
- Edison Trading Spa - Italy
- Merrill Lynch Commodities Europe
- Kaltim Prima Coal - Indonesia
- SMG Consultants - Indonesia
- Altura Mining Limited, Indonesia
- Holcim Trading Pte Ltd - Singapore
- Attock Cement Pakistan Limited
- Kobexindo Tractors - Indoneisa
- Meralco Power Generation, Philippines
- Vedanta Resources Plc - India
- London Commodity Brokers - England
- The University of Queensland
- Chamber of Mines of South Africa
- Renaissance Capital - South Africa
- Parliament of New Zealand
- Africa Commodities Group - South Africa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- Simpson Spence & Young - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Siam City Cement - Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Bukit Makmur.PT - Indonesia
- Mintek Dendrill Indonesia
- Tata Chemicals Ltd - India
- Kapuas Tunggal Persada - Indonesia
- McConnell Dowell - Australia
- Jindal Steel & Power Ltd - India
- Economic Council, Georgia
- Makarim & Taira - Indonesia
- Posco Energy - South Korea
- Trasteel International SA, Italy
- Vijayanagar Sugar Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- SMC Global Power, Philippines
- Sindya Power Generating Company Private Ltd
- Deloitte Consulting - India
- Goldman Sachs - Singapore
- Kartika Selabumi Mining - Indonesia
- Ministry of Mines - Canada
- Siam City Cement PLC, Thailand
- Intertek Mineral Services - Indonesia
- Australian Commodity Traders Exchange
- Kepco SPC Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Price Waterhouse Coopers - Russia
- Coalindo Energy - Indonesia
- Interocean Group of Companies - India
- GAC Shipping (India) Pvt Ltd
- Directorate Of Revenue Intelligence - India
- Bharathi Cement Corporation - India
- Videocon Industries ltd - India
- Cigading International Bulk Terminal - Indonesia
- Indogreen Group - Indonesia
- Indian Oil Corporation Limited
- Manunggal Multi Energi - Indonesia
- Sarangani Energy Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- VISA Power Limited - India
- Singapore Mercantile Exchange
- Central Java Power - Indonesia
- IEA Clean Coal Centre - UK
- Bukit Asam (Persero) Tbk - Indonesia
- Oldendorff Carriers - Singapore
- Ind-Barath Power Infra Limited - India
- Therma Luzon, Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Bhatia International Limited - India
- IHS Mccloskey Coal Group - USA
- Karbindo Abesyapradhi - Indoneisa
- New Zealand Coal & Carbon
- South Luzon Thermal Energy Corporation
- European Bulk Services B.V. - Netherlands
- Carbofer General Trading SA - India
- Lanco Infratech Ltd - India
- Mercuria Energy - Indonesia
- PNOC Exploration Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Antam Resourcindo - Indonesia
- Borneo Indobara - Indonesia
- Straits Asia Resources Limited - Singapore
- Tamil Nadu electricity Board
- Electricity Generating Authority of Thailand
- Sinarmas Energy and Mining - Indonesia
- The State Trading Corporation of India Ltd
- Heidelberg Cement - Germany
- Global Green Power PLC Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Formosa Plastics Group - Taiwan
- Bangladesh Power Developement Board
- Marubeni Corporation - India
- Wood Mackenzie - Singapore
- Sical Logistics Limited - India
- Star Paper Mills Limited - India
- Independent Power Producers Association of India
- Australian Coal Association
- Thai Mozambique Logistica
- ICICI Bank Limited - India
- Eastern Energy - Thailand
- Semirara Mining Corp, Philippines
- Semirara Mining and Power Corporation, Philippines
- Cement Manufacturers Association - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Orica Mining Services - Indonesia
- Aboitiz Power Corporation - Philippines
- Iligan Light & Power Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- Karaikal Port Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Romanian Commodities Exchange
- Global Coal Blending Company Limited - Australia
- Agrawal Coal Company - India
- Larsen & Toubro Limited - India
- Madhucon Powers Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Ministry of Finance - Indonesia
- Binh Thuan Hamico - Vietnam
- Aditya Birla Group - India
- Indian Energy Exchange, India
- Salva Resources Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Billiton Holdings Pty Ltd - Australia
- International Coal Ventures Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- CNBM International Corporation - China
- Jaiprakash Power Ventures ltd
- Power Finance Corporation Ltd., India
- PowerSource Philippines DevCo
- Ambuja Cements Ltd - India
- Mercator Lines Limited - India
- Electricity Authority, New Zealand
- Indo Tambangraya Megah - Indonesia
- Standard Chartered Bank - UAE
- Uttam Galva Steels Limited - India
- India Bulls Power Limited - India
- Globalindo Alam Lestari - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Grasim Industreis Ltd - India
- San Jose City I Power Corp, Philippines
- The Treasury - Australian Government
- Petron Corporation, Philippines
- GVK Power & Infra Limited - India
- LBH Netherlands Bv - Netherlands
- Vizag Seaport Private Limited - India
- Parry Sugars Refinery, India
- Central Electricity Authority - India
- Georgia Ports Authority, United States
- Bulk Trading Sa - Switzerland
- CIMB Investment Bank - Malaysia
- Minerals Council of Australia
- PTC India Limited - India
- Baramulti Group, Indonesia
- Kumho Petrochemical, South Korea
- SN Aboitiz Power Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- White Energy Company Limited
- Xindia Steels Limited - India
- OPG Power Generation Pvt Ltd - India
- Bhushan Steel Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- MS Steel International - UAE
- Rashtriya Ispat Nigam Limited - India
- Orica Australia Pty. Ltd.
- Banpu Public Company Limited - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- TeaM Sual Corporation - Philippines
- Riau Bara Harum - Indonesia
- Rio Tinto Coal - Australia
- PetroVietnam Power Coal Import and Supply Company
- Energy Development Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Ceylon Electricity Board - Sri Lanka
- Essar Steel Hazira Ltd - India
- Kideco Jaya Agung - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Gujarat Sidhee Cement - India
- Dalmia Cement Bharat India
- Samtan Co., Ltd - South Korea
- Eastern Coal Council - USA
- Leighton Contractors Pty Ltd - Australia
- Thiess Contractors Indonesia
- Energy Link Ltd, New Zealand
- Mjunction Services Limited - India
- Bayan Resources Tbk. - Indonesia
- Latin American Coal - Colombia
- Commonwealth Bank - Australia
- Timah Investasi Mineral - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- Port Waratah Coal Services - Australia
- Directorate General of MIneral and Coal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Maheswari Brothers Coal Limited - India
- Chettinad Cement Corporation Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Global Business Power Corporation, Philippines
- Wilmar Investment Holdings
- Sakthi Sugars Limited - India
- Indonesian Coal Mining Association
- Ministry of Transport, Egypt
- Coal and Oil Company - UAE
- Sojitz Corporation - Japan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Anglo American - United Kingdom
- Coastal Gujarat Power Limited - India
- GMR Energy Limited - India
- Malabar Cements Ltd - India
- Bhoruka Overseas - Indonesia
- Medco Energi Mining Internasional
- ASAPP Information Group - India
- Metalloyd Limited - United Kingdom
- Indika Energy - Indonesia
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