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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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- Simpson Spence & Young - Indonesia
- Medco Energi Mining Internasional
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- Karbindo Abesyapradhi - Indoneisa
- Goldman Sachs - Singapore
- Standard Chartered Bank - UAE
- Minerals Council of Australia
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- Mjunction Services Limited - India
- Bukit Makmur.PT - Indonesia
- Savvy Resources Ltd - HongKong
- GN Power Mariveles Coal Plant, Philippines
- The Treasury - Australian Government
- Georgia Ports Authority, United States
- Attock Cement Pakistan Limited
- Australian Commodity Traders Exchange
- Electricity Generating Authority of Thailand
- Coalindo Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Sindya Power Generating Company Private Ltd
- Renaissance Capital - South Africa
- Asmin Koalindo Tuhup - Indonesia
- Makarim & Taira - Indonesia
- Vizag Seaport Private Limited - India
- Power Finance Corporation Ltd., India
- SMG Consultants - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Uttam Galva Steels Limited - India
- IHS Mccloskey Coal Group - USA
- Directorate Of Revenue Intelligence - India
- Bahari Cakrawala Sebuku - Indonesia
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- Commonwealth Bank - Australia
- Orica Australia Pty. Ltd.
- Kartika Selabumi Mining - Indonesia
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- Latin American Coal - Colombia
- Xindia Steels Limited - India
- Ministry of Finance - Indonesia
- TeaM Sual Corporation - Philippines
- Electricity Authority, New Zealand
- Posco Energy - South Korea
- Independent Power Producers Association of India
- MS Steel International - UAE
- Global Coal Blending Company Limited - Australia
- Tata Chemicals Ltd - India
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- Wilmar Investment Holdings
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- Kumho Petrochemical, South Korea
- Samtan Co., Ltd - South Korea
- Sarangani Energy Corporation, Philippines
- White Energy Company Limited
- Price Waterhouse Coopers - Russia
- Port Waratah Coal Services - Australia
- Directorate General of MIneral and Coal - Indonesia
- Cement Manufacturers Association - India
- Indian Energy Exchange, India
- Kepco SPC Power Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- Bangladesh Power Developement Board
- San Jose City I Power Corp, Philippines
- Binh Thuan Hamico - Vietnam
- The University of Queensland
- Jaiprakash Power Ventures ltd
- Gujarat Electricity Regulatory Commission - India
- Central Java Power - Indonesia
- Bharathi Cement Corporation - India
- Salva Resources Pvt Ltd - India
- Coal and Oil Company - UAE
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Alfred C Toepfer International GmbH - Germany
- Thiess Contractors Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Orica Mining Services - Indonesia
- Aditya Birla Group - India
- Trasteel International SA, Italy
- IEA Clean Coal Centre - UK
- PNOC Exploration Corporation - Philippines
- Antam Resourcindo - Indonesia
- Bhushan Steel Limited - India
- Africa Commodities Group - South Africa
- Sical Logistics Limited - India
- Energy Development Corp, Philippines
- VISA Power Limited - India
- Semirara Mining Corp, Philippines
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- Indian Oil Corporation Limited
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- Interocean Group of Companies - India
- Mercuria Energy - Indonesia
- Marubeni Corporation - India
- Merrill Lynch Commodities Europe
- ASAPP Information Group - India
- Dalmia Cement Bharat India
- Heidelberg Cement - Germany
- Planning Commission, India
- SMC Global Power, Philippines
- Pendopo Energi Batubara - Indonesia
- GVK Power & Infra Limited - India
- Banpu Public Company Limited - Thailand
- Bayan Resources Tbk. - Indonesia
- PTC India Limited - India
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- Rio Tinto Coal - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- LBH Netherlands Bv - Netherlands
- Ministry of Transport, Egypt
- Ceylon Electricity Board - Sri Lanka
- Mintek Dendrill Indonesia
- Holcim Trading Pte Ltd - Singapore
- Australian Coal Association
- Sojitz Corporation - Japan
- South Luzon Thermal Energy Corporation
- ICICI Bank Limited - India
- Mercator Lines Limited - India
- Singapore Mercantile Exchange
- Indo Tambangraya Megah - Indonesia
- Malabar Cements Ltd - India
- SN Aboitiz Power Inc, Philippines
- Eastern Energy - Thailand
- Larsen & Toubro Limited - India
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- European Bulk Services B.V. - Netherlands
- Romanian Commodities Exchange
- Global Business Power Corporation, Philippines
- McConnell Dowell - Australia
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- The State Trading Corporation of India Ltd
- Meralco Power Generation, Philippines
- Petron Corporation, Philippines
- Bhatia International Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Bukit Baiduri Energy - Indonesia
- Oldendorff Carriers - Singapore
- OPG Power Generation Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
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- Meenaskhi Energy Private Limited - India
- Madhucon Powers Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Thai Mozambique Logistica
- Petrochimia International Co. Ltd.- Taiwan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Maheswari Brothers Coal Limited - India
- Vedanta Resources Plc - India
- Parliament of New Zealand
- Iligan Light & Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Leighton Contractors Pty Ltd - Australia
- India Bulls Power Limited - India
- Intertek Mineral Services - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Jindal Steel & Power Ltd - India
- Agrawal Coal Company - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- New Zealand Coal & Carbon
- Indika Energy - Indonesia
- Siam City Cement PLC, Thailand
- Indogreen Group - Indonesia
- Lanco Infratech Ltd - India
- Energy Link Ltd, New Zealand
- Sakthi Sugars Limited - India
- Miang Besar Coal Terminal - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Barasentosa Lestari - Indonesia
- Kideco Jaya Agung - Indonesia
- Timah Investasi Mineral - Indoneisa
- Star Paper Mills Limited - India
- Sree Jayajothi Cements Limited - India
- Chamber of Mines of South Africa
- Bulk Trading Sa - Switzerland
- Parry Sugars Refinery, India
- Essar Steel Hazira Ltd - India
- Coastal Gujarat Power Limited - India
- Altura Mining Limited, Indonesia
- Formosa Plastics Group - Taiwan
- Pipit Mutiara Jaya. PT, Indonesia
- Indonesian Coal Mining Association
- AsiaOL BioFuels Corp., Philippines
- Borneo Indobara - Indonesia
- Videocon Industries ltd - India
- Siam City Cement - Thailand
- CNBM International Corporation - China
- Central Electricity Authority - India
- Deloitte Consulting - India
- Chettinad Cement Corporation Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- TNB Fuel Sdn Bhd - Malaysia
- GMR Energy Limited - India
- Eastern Coal Council - USA
- Baramulti Group, Indonesia
- Wood Mackenzie - Singapore
- Krishnapatnam Port Company Ltd. - India
- Economic Council, Georgia
- Metalloyd Limited - United Kingdom
- PowerSource Philippines DevCo
- Global Green Power PLC Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Ministry of Mines - Canada
- London Commodity Brokers - England
- Riau Bara Harum - Indonesia
- Edison Trading Spa - Italy
- Grasim Industreis Ltd - India
- Kaltim Prima Coal - Indonesia
- Aboitiz Power Corporation - Philippines
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- Semirara Mining and Power Corporation, Philippines
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- Anglo American - United Kingdom
- Bhoruka Overseas - Indonesia
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