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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, 21 October 09
INDONESIA'S BUKIT ASAM GETS COAL RAILWAY APPROVAL
Reuters reported that, Indonesian state coal miner PT Tambang Batubara Bukit Asam Tbk said on Wednesday it had been given government approval to sta ...
Wednesday, 21 October 09
COAL DEMAND SOARS AS ASIA ECONOMIES REBOUND - PEABODY
Reuters reported that, Demand for coal to generate electricity and make steel in China and India is expected to grow by 7 percent to 8 percent annua ...
Wednesday, 21 October 09
INDONESIAN SHOCK FOR INDIAN POWER PLANTS
Business-Standard reported that, India’s ambitious plans to generate an additional 180,000 Mw of power in the next seven years will face hurdl ...
Wednesday, 21 October 09
DUTA GRAHA PLANNING TO DELVE INTO MINING SECTOR
The Jakarta Globe reported that, PT Duta Graha, one of the country’s largest private engineering firms, says it intends to diversify into the ...
Tuesday, 20 October 09
RECAPITAL SET TO BUY INDONESIA'S BERAU COAL - SOURCES
* COULD PAY AT LEAST $1.3 BLN FOR BERAU - SOURCES
* RECAPITAL CONFIRMS IT HAS BID FOR BERAU
* BAKRIE GROUP LIKELY TO BACK BID – SOURCES
...
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- Cigading International Bulk Terminal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Chettinad Cement Corporation Ltd - India
- Maheswari Brothers Coal Limited - India
- Wood Mackenzie - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Singapore Mercantile Exchange
- Thiess Contractors Indonesia
- Goldman Sachs - Singapore
- Siam City Cement - Thailand
- Indian Energy Exchange, India
- Ministry of Mines - Canada
- TNB Fuel Sdn Bhd - Malaysia
- Bulk Trading Sa - Switzerland
- Orica Mining Services - Indonesia
- Parry Sugars Refinery, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Binh Thuan Hamico - Vietnam
- Parliament of New Zealand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Directorate Of Revenue Intelligence - India
- Ceylon Electricity Board - Sri Lanka
- Directorate General of MIneral and Coal - Indonesia
- Renaissance Capital - South Africa
- Kalimantan Lumbung Energi - Indonesia
- Marubeni Corporation - India
- Trasteel International SA, Italy
- Georgia Ports Authority, United States
- Antam Resourcindo - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Aditya Birla Group - India
- Rashtriya Ispat Nigam Limited - India
- GVK Power & Infra Limited - India
- Sree Jayajothi Cements Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Deloitte Consulting - India
- Sindya Power Generating Company Private Ltd
- Port Waratah Coal Services - Australia
- Kartika Selabumi Mining - Indonesia
- Latin American Coal - Colombia
- PowerSource Philippines DevCo
- Star Paper Mills Limited - India
- Indogreen Group - Indonesia
- Bharathi Cement Corporation - India
- Kapuas Tunggal Persada - Indonesia
- Attock Cement Pakistan Limited
- Sakthi Sugars Limited - India
- Commonwealth Bank - Australia
- Maharashtra Electricity Regulatory Commission - India
- Agrawal Coal Company - India
- Petrochimia International Co. Ltd.- Taiwan
- Lanco Infratech Ltd - India
- White Energy Company Limited
- Merrill Lynch Commodities Europe
- Global Coal Blending Company Limited - Australia
- Sinarmas Energy and Mining - Indonesia
- Madhucon Powers Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Energy Link Ltd, New Zealand
- Larsen & Toubro Limited - India
- Sical Logistics Limited - India
- Gujarat Electricity Regulatory Commission - India
- Iligan Light & Power Inc, Philippines
- Metalloyd Limited - United Kingdom
- Oldendorff Carriers - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Videocon Industries ltd - India
- Carbofer General Trading SA - India
- Bhoruka Overseas - Indonesia
- Manunggal Multi Energi - Indonesia
- Edison Trading Spa - Italy
- Cement Manufacturers Association - India
- Central Java Power - Indonesia
- Global Green Power PLC Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Anglo American - United Kingdom
- Simpson Spence & Young - Indonesia
- IEA Clean Coal Centre - UK
- London Commodity Brokers - England
- Jindal Steel & Power Ltd - India
- Meralco Power Generation, Philippines
- VISA Power Limited - India
- Riau Bara Harum - Indonesia
- ICICI Bank Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Central Electricity Authority - India
- Timah Investasi Mineral - Indoneisa
- Standard Chartered Bank - UAE
- New Zealand Coal & Carbon
- Salva Resources Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Electricity Authority, New Zealand
- Miang Besar Coal Terminal - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Borneo Indobara - Indonesia
- Dalmia Cement Bharat India
- Indika Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Holcim Trading Pte Ltd - Singapore
- Minerals Council of Australia
- Kobexindo Tractors - Indoneisa
- Economic Council, Georgia
- Bangladesh Power Developement Board
- Tata Chemicals Ltd - India
- Mjunction Services Limited - India
- Ambuja Cements Ltd - India
- Kaltim Prima Coal - Indonesia
- Samtan Co., Ltd - South Korea
- Makarim & Taira - Indonesia
- Eastern Coal Council - USA
- Coal and Oil Company - UAE
- Pendopo Energi Batubara - Indonesia
- Africa Commodities Group - South Africa
- Global Business Power Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- SMC Global Power, Philippines
- The State Trading Corporation of India Ltd
- Karaikal Port Pvt Ltd - India
- Ministry of Transport, Egypt
- European Bulk Services B.V. - Netherlands
- GAC Shipping (India) Pvt Ltd
- Independent Power Producers Association of India
- Siam City Cement PLC, Thailand
- San Jose City I Power Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- Planning Commission, India
- Mercuria Energy - Indonesia
- Bhatia International Limited - India
- Romanian Commodities Exchange
- Australian Commodity Traders Exchange
- TeaM Sual Corporation - Philippines
- Mintek Dendrill Indonesia
- Energy Development Corp, Philippines
- Rio Tinto Coal - Australia
- Malabar Cements Ltd - India
- Gujarat Sidhee Cement - India
- Sojitz Corporation - Japan
- Krishnapatnam Port Company Ltd. - India
- Medco Energi Mining Internasional
- Vijayanagar Sugar Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Kumho Petrochemical, South Korea
- Electricity Generating Authority of Thailand
- McConnell Dowell - Australia
- Semirara Mining Corp, Philippines
- South Luzon Thermal Energy Corporation
- India Bulls Power Limited - India
- Kepco SPC Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- LBH Netherlands Bv - Netherlands
- PNOC Exploration Corporation - Philippines
- Coalindo Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Essar Steel Hazira Ltd - India
- Interocean Group of Companies - India
- Billiton Holdings Pty Ltd - Australia
- The Treasury - Australian Government
- Posco Energy - South Korea
- Thai Mozambique Logistica
- Barasentosa Lestari - Indonesia
- Vedanta Resources Plc - India
- Pipit Mutiara Jaya. PT, Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Tamil Nadu electricity Board
- The University of Queensland
- Eastern Energy - Thailand
- Straits Asia Resources Limited - Singapore
- Aboitiz Power Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- MS Steel International - UAE
- Intertek Mineral Services - Indonesia
- Therma Luzon, Inc, Philippines
- Uttam Galva Steels Limited - India
- Indian Oil Corporation Limited
- Savvy Resources Ltd - HongKong
- Chamber of Mines of South Africa
- Ind-Barath Power Infra Limited - India
- Indonesian Coal Mining Association
- SN Aboitiz Power Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Petron Corporation, Philippines
- Heidelberg Cement - Germany
- Formosa Plastics Group - Taiwan
- Kohat Cement Company Ltd. - Pakistan
- Bhushan Steel Limited - India
- Bayan Resources Tbk. - Indonesia
- PTC India Limited - India
- CNBM International Corporation - China
- Kideco Jaya Agung - Indonesia
- Price Waterhouse Coopers - Russia
- GMR Energy Limited - India
- Grasim Industreis Ltd - India
- Mercator Lines Limited - India
- Altura Mining Limited, Indonesia
- Jaiprakash Power Ventures ltd
- Australian Coal Association
- Ministry of Finance - Indonesia
- SMG Consultants - Indonesia
- Xindia Steels Limited - India
- Power Finance Corporation Ltd., India
- Indo Tambangraya Megah - Indonesia
- Orica Australia Pty. Ltd.
- Wilmar Investment Holdings
- Banpu Public Company Limited - Thailand
- Vizag Seaport Private Limited - India
- Bukit Baiduri Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- Baramulti Group, Indonesia
- Sarangani Energy Corporation, Philippines
- ASAPP Information Group - India
- CIMB Investment Bank - Malaysia
- Bukit Makmur.PT - Indonesia
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