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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, 14 October 09
SA'S COAL OUTPUT LIKELY TO RISE BY 2011, BOOSTED BY WATERBERG MINES
Mining weekly reported that, South Africa's coal production will struggle to meet demand over the next few years, but coal production could likely ...
Tuesday, 13 October 09
INDONESIA'S BAYAN SEES 2010 COAL OUTPUT UP 42 PCT
Reuters reported that, Indonesian coal miner PT Bayan Resources Tbk (BYAN.JK) said on Tuesday it expects its coal output to increase by 42 percent i ...
Tuesday, 13 October 09
STRAITS ASIA UPBEAT ON MEETING 2009 COAL OUTPUT
Reuters reported that, Singapore-listed coal miner Straits Asia is still optimistic about meeting its coal output target of 9 million tonnes this ye ...
Tuesday, 13 October 09
THERMAL COAL DEMAND IN CHINA DRIVES PRICE INCREASES
Metal Miner reported that, Thermal coal prices have been falling this year; contrary to many other commodities, both metals and energy that hit bott ...
Tuesday, 13 October 09
JSW ENERGY SCOUTING FOR PARTNERS, ACQUISITIONS
Business-Standard reported that, JSW Energy is planning to become an integrated power company by bringing in a partner for its transmission business ...
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- Therma Luzon, Inc, Philippines
- Vizag Seaport Private Limited - India
- Global Business Power Corporation, Philippines
- Cement Manufacturers Association - India
- Central Java Power - Indonesia
- ICICI Bank Limited - India
- ASAPP Information Group - India
- Simpson Spence & Young - Indonesia
- Power Finance Corporation Ltd., India
- Marubeni Corporation - India
- Medco Energi Mining Internasional
- Vijayanagar Sugar Pvt Ltd - India
- Rio Tinto Coal - Australia
- Iligan Light & Power Inc, Philippines
- Petron Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- Attock Cement Pakistan Limited
- International Coal Ventures Pvt Ltd - India
- Meralco Power Generation, Philippines
- Coalindo Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- Bharathi Cement Corporation - India
- Commonwealth Bank - Australia
- Latin American Coal - Colombia
- Agrawal Coal Company - India
- Sree Jayajothi Cements Limited - India
- Cigading International Bulk Terminal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Bhatia International Limited - India
- Price Waterhouse Coopers - Russia
- Malabar Cements Ltd - India
- Uttam Galva Steels Limited - India
- Romanian Commodities Exchange
- McConnell Dowell - Australia
- Holcim Trading Pte Ltd - Singapore
- Bayan Resources Tbk. - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kobexindo Tractors - Indoneisa
- Dalmia Cement Bharat India
- Karaikal Port Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Mintek Dendrill Indonesia
- Lanco Infratech Ltd - India
- Straits Asia Resources Limited - Singapore
- The Treasury - Australian Government
- Electricity Authority, New Zealand
- Edison Trading Spa - Italy
- OPG Power Generation Pvt Ltd - India
- Posco Energy - South Korea
- Toyota Tsusho Corporation, Japan
- Sojitz Corporation - Japan
- Chamber of Mines of South Africa
- Billiton Holdings Pty Ltd - Australia
- Makarim & Taira - Indonesia
- Leighton Contractors Pty Ltd - Australia
- SMG Consultants - Indonesia
- Kumho Petrochemical, South Korea
- Goldman Sachs - Singapore
- PNOC Exploration Corporation - Philippines
- TeaM Sual Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- Madhucon Powers Ltd - India
- Star Paper Mills Limited - India
- Tata Chemicals Ltd - India
- CNBM International Corporation - China
- Mjunction Services Limited - India
- Coal and Oil Company - UAE
- Energy Link Ltd, New Zealand
- Mercuria Energy - Indonesia
- Bukit Baiduri Energy - Indonesia
- Interocean Group of Companies - India
- Indian Oil Corporation Limited
- Grasim Industreis Ltd - India
- Metalloyd Limited - United Kingdom
- LBH Netherlands Bv - Netherlands
- London Commodity Brokers - England
- PTC India Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Ind-Barath Power Infra Limited - India
- Parliament of New Zealand
- Chettinad Cement Corporation Ltd - India
- Semirara Mining Corp, Philippines
- Aditya Birla Group - India
- Planning Commission, India
- Siam City Cement - Thailand
- Sindya Power Generating Company Private Ltd
- Maheswari Brothers Coal Limited - India
- Wilmar Investment Holdings
- Standard Chartered Bank - UAE
- GAC Shipping (India) Pvt Ltd
- Global Coal Blending Company Limited - Australia
- Bhoruka Overseas - Indonesia
- Carbofer General Trading SA - India
- Xindia Steels Limited - India
- Jaiprakash Power Ventures ltd
- SMC Global Power, Philippines
- Thai Mozambique Logistica
- Essar Steel Hazira Ltd - India
- Eastern Coal Council - USA
- Orica Australia Pty. Ltd.
- Banpu Public Company Limited - Thailand
- Bahari Cakrawala Sebuku - Indonesia
- IEA Clean Coal Centre - UK
- Parry Sugars Refinery, India
- Indika Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Renaissance Capital - South Africa
- Asmin Koalindo Tuhup - Indonesia
- Merrill Lynch Commodities Europe
- Jindal Steel & Power Ltd - India
- Videocon Industries ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Riau Bara Harum - Indonesia
- South Luzon Thermal Energy Corporation
- Bangladesh Power Developement Board
- Neyveli Lignite Corporation Ltd, - India
- Binh Thuan Hamico - Vietnam
- GN Power Mariveles Coal Plant, Philippines
- Kapuas Tunggal Persada - Indonesia
- Miang Besar Coal Terminal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Sarangani Energy Corporation, Philippines
- Baramulti Group, Indonesia
- Gujarat Electricity Regulatory Commission - India
- CIMB Investment Bank - Malaysia
- Manunggal Multi Energi - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bukit Asam (Persero) Tbk - Indonesia
- Kepco SPC Power Corporation, Philippines
- Energy Development Corp, Philippines
- Globalindo Alam Lestari - Indonesia
- Australian Coal Association
- Georgia Ports Authority, United States
- Thiess Contractors Indonesia
- Vedanta Resources Plc - India
- Pendopo Energi Batubara - Indonesia
- SN Aboitiz Power Inc, Philippines
- Orica Mining Services - Indonesia
- Bhushan Steel Limited - India
- Sical Logistics Limited - India
- Indogreen Group - Indonesia
- White Energy Company Limited
- The University of Queensland
- Krishnapatnam Port Company Ltd. - India
- Borneo Indobara - Indonesia
- Africa Commodities Group - South Africa
- Formosa Plastics Group - Taiwan
- Bukit Makmur.PT - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Rashtriya Ispat Nigam Limited - India
- Kideco Jaya Agung - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Ministry of Mines - Canada
- San Jose City I Power Corp, Philippines
- Ambuja Cements Ltd - India
- Economic Council, Georgia
- New Zealand Coal & Carbon
- IHS Mccloskey Coal Group - USA
- Indian Energy Exchange, India
- Mercator Lines Limited - India
- Altura Mining Limited, Indonesia
- AsiaOL BioFuels Corp., Philippines
- Ministry of Transport, Egypt
- Antam Resourcindo - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Anglo American - United Kingdom
- VISA Power Limited - India
- Ministry of Finance - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Eastern Energy - Thailand
- MS Steel International - UAE
- Indo Tambangraya Megah - Indonesia
- Kartika Selabumi Mining - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- India Bulls Power Limited - India
- Tamil Nadu electricity Board
- Siam City Cement PLC, Thailand
- Directorate Of Revenue Intelligence - India
- Gujarat Mineral Development Corp Ltd - India
- Port Waratah Coal Services - Australia
- Larsen & Toubro Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Meenaskhi Energy Private Limited - India
- Independent Power Producers Association of India
- Minerals Council of Australia
- GMR Energy Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Central Electricity Authority - India
- Indonesian Coal Mining Association
- Wood Mackenzie - Singapore
- Aboitiz Power Corporation - Philippines
- Singapore Mercantile Exchange
- Bulk Trading Sa - Switzerland
- Intertek Mineral Services - Indonesia
- The State Trading Corporation of India Ltd
- Barasentosa Lestari - Indonesia
- Deloitte Consulting - India
- Oldendorff Carriers - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Sakthi Sugars Limited - India
- Savvy Resources Ltd - HongKong
- Australian Commodity Traders Exchange
- Salva Resources Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Trasteel International SA, Italy
- Heidelberg Cement - Germany
- Samtan Co., Ltd - South Korea
- GVK Power & Infra Limited - India
- PowerSource Philippines DevCo
- Gujarat Sidhee Cement - India
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