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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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Tuesday, 20 October 09
COAL PRICES TO SURGE IN 2010 DESPITE AMPLE SUPPLY
Commodity Online reported that, Coal prices are indeed destined to go higher as they follow the rise of ‘coal currencies’ such as Austra ...
Tuesday, 20 October 09
INDIA MAY CUT STAKE IN NTPC BY DECEMBER, POWER SECRETARY SAYS
Bloomberg reported that, India’s government may sell a 5 percent stake in NTPC Ltd., the country’s biggest power producer, as early as D ...
Monday, 19 October 09
COAL PRICE UP AGAIN - RICHARDS BAY TERMINAL
Export prices rose 45 cents, or 0.7%, to an average of 64.05 a metric ton in the week ended Oct. 16, according to McCloskey Group.
The week was & ...
Monday, 19 October 09
COAL MINISTRY SEEKS EXPLANATION FROM AP GENCO
The Hindu Business reported that, the Coal Ministry has asked the Power Generation Corporation of Andhra Pradesh (AP Genco) to explain why there was ...
Monday, 19 October 09
CEMENT UNLIKELY TO COST MORE DESPITE COAL PRICE HIKE
Business-Standard reported that, Cement manufacturers will not immediately hike prices of the construction material, despite a surge in their input ...
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- Globalindo Alam Lestari - Indonesia
- Goldman Sachs - Singapore
- Vedanta Resources Plc - India
- TNB Fuel Sdn Bhd - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- Orica Mining Services - Indonesia
- ICICI Bank Limited - India
- Baramulti Group, Indonesia
- Ministry of Mines - Canada
- Coal and Oil Company - UAE
- Global Coal Blending Company Limited - Australia
- McConnell Dowell - Australia
- Latin American Coal - Colombia
- Energy Development Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Riau Bara Harum - Indonesia
- Directorate Of Revenue Intelligence - India
- Lanco Infratech Ltd - India
- Aditya Birla Group - India
- Directorate General of MIneral and Coal - Indonesia
- Formosa Plastics Group - Taiwan
- Indika Energy - Indonesia
- Meralco Power Generation, Philippines
- Electricity Authority, New Zealand
- Bangladesh Power Developement Board
- Africa Commodities Group - South Africa
- Sree Jayajothi Cements Limited - India
- Kaltim Prima Coal - Indonesia
- ASAPP Information Group - India
- Banpu Public Company Limited - Thailand
- Simpson Spence & Young - Indonesia
- San Jose City I Power Corp, Philippines
- CIMB Investment Bank - Malaysia
- Makarim & Taira - Indonesia
- Carbofer General Trading SA - India
- Maharashtra Electricity Regulatory Commission - India
- Timah Investasi Mineral - Indoneisa
- Asmin Koalindo Tuhup - Indonesia
- Larsen & Toubro Limited - India
- Trasteel International SA, Italy
- IEA Clean Coal Centre - UK
- Straits Asia Resources Limited - Singapore
- Parry Sugars Refinery, India
- Leighton Contractors Pty Ltd - Australia
- TeaM Sual Corporation - Philippines
- Mjunction Services Limited - India
- Marubeni Corporation - India
- White Energy Company Limited
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Thiess Contractors Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Binh Thuan Hamico - Vietnam
- MS Steel International - UAE
- Agrawal Coal Company - India
- Barasentosa Lestari - Indonesia
- London Commodity Brokers - England
- Cigading International Bulk Terminal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Central Electricity Authority - India
- Mercator Lines Limited - India
- OPG Power Generation Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Jindal Steel & Power Ltd - India
- GAC Shipping (India) Pvt Ltd
- Mintek Dendrill Indonesia
- The University of Queensland
- Karaikal Port Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Bhatia International Limited - India
- Central Java Power - Indonesia
- Bhoruka Overseas - Indonesia
- Kideco Jaya Agung - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Samtan Co., Ltd - South Korea
- PTC India Limited - India
- Xindia Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- Manunggal Multi Energi - Indonesia
- Sindya Power Generating Company Private Ltd
- Indonesian Coal Mining Association
- Pendopo Energi Batubara - Indonesia
- PowerSource Philippines DevCo
- Bulk Trading Sa - Switzerland
- Salva Resources Pvt Ltd - India
- Romanian Commodities Exchange
- SMG Consultants - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Petron Corporation, Philippines
- Commonwealth Bank - Australia
- Singapore Mercantile Exchange
- Semirara Mining Corp, Philippines
- Ministry of Finance - Indonesia
- Electricity Generating Authority of Thailand
- Borneo Indobara - Indonesia
- Dalmia Cement Bharat India
- SMC Global Power, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Indo Tambangraya Megah - Indonesia
- Savvy Resources Ltd - HongKong
- Mercuria Energy - Indonesia
- Indogreen Group - Indonesia
- Australian Coal Association
- Kartika Selabumi Mining - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Anglo American - United Kingdom
- International Coal Ventures Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Tamil Nadu electricity Board
- Australian Commodity Traders Exchange
- South Luzon Thermal Energy Corporation
- Chamber of Mines of South Africa
- Gujarat Mineral Development Corp Ltd - India
- Vizag Seaport Private Limited - India
- GVK Power & Infra Limited - India
- Medco Energi Mining Internasional
- New Zealand Coal & Carbon
- Independent Power Producers Association of India
- Global Business Power Corporation, Philippines
- India Bulls Power Limited - India
- Kepco SPC Power Corporation, Philippines
- Coalindo Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Kumho Petrochemical, South Korea
- Sojitz Corporation - Japan
- Maheswari Brothers Coal Limited - India
- Madhucon Powers Ltd - India
- Malabar Cements Ltd - India
- Ministry of Transport, Egypt
- IHS Mccloskey Coal Group - USA
- Gujarat Sidhee Cement - India
- Altura Mining Limited, Indonesia
- Bhushan Steel Limited - India
- Rashtriya Ispat Nigam Limited - India
- Energy Link Ltd, New Zealand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Merrill Lynch Commodities Europe
- European Bulk Services B.V. - Netherlands
- The Treasury - Australian Government
- Chettinad Cement Corporation Ltd - India
- VISA Power Limited - India
- CNBM International Corporation - China
- Eastern Energy - Thailand
- Power Finance Corporation Ltd., India
- Sical Logistics Limited - India
- SN Aboitiz Power Inc, Philippines
- Uttam Galva Steels Limited - India
- Bukit Makmur.PT - Indonesia
- Wilmar Investment Holdings
- Sarangani Energy Corporation, Philippines
- Grasim Industreis Ltd - India
- Bharathi Cement Corporation - India
- Tata Chemicals Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Ceylon Electricity Board - Sri Lanka
- Port Waratah Coal Services - Australia
- Economic Council, Georgia
- Bahari Cakrawala Sebuku - Indonesia
- Antam Resourcindo - Indonesia
- Georgia Ports Authority, United States
- Siam City Cement PLC, Thailand
- Jaiprakash Power Ventures ltd
- Semirara Mining and Power Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indian Oil Corporation Limited
- Oldendorff Carriers - Singapore
- Sakthi Sugars Limited - India
- Coastal Gujarat Power Limited - India
- Edison Trading Spa - Italy
- Parliament of New Zealand
- Star Paper Mills Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Renaissance Capital - South Africa
- Siam City Cement - Thailand
- Intertek Mineral Services - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bayan Resources Tbk. - Indonesia
- Heidelberg Cement - Germany
- Wood Mackenzie - Singapore
- Ambuja Cements Ltd - India
- Essar Steel Hazira Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Minerals Council of Australia
- Karbindo Abesyapradhi - Indoneisa
- Indian Energy Exchange, India
- Miang Besar Coal Terminal - Indonesia
- Metalloyd Limited - United Kingdom
- Orica Australia Pty. Ltd.
- Billiton Holdings Pty Ltd - Australia
- Eastern Coal Council - USA
- Posco Energy - South Korea
- Rio Tinto Coal - Australia
- Alfred C Toepfer International GmbH - Germany
- Ind-Barath Power Infra Limited - India
- Cement Manufacturers Association - India
- Petrochimia International Co. Ltd.- Taiwan
- Bukit Baiduri Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Kobexindo Tractors - Indoneisa
- PNOC Exploration Corporation - Philippines
- Standard Chartered Bank - UAE
- Vijayanagar Sugar Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Iligan Light & Power Inc, Philippines
- Videocon Industries ltd - India
- Thai Mozambique Logistica
- GMR Energy Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Interocean Group of Companies - India
- Attock Cement Pakistan Limited
- Pipit Mutiara Jaya. PT, Indonesia
- Therma Luzon, Inc, Philippines
- Deloitte Consulting - India
- Toyota Tsusho Corporation, Japan
- Planning Commission, India
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