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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, 07 October 09
COAL INDIA, SHIPPING CORP MAY FORM VENTURE TO IMPORT COAL
The venture may be on the lines of the firm that CIL plans with SAIL for coal imports in which both to hold 25%
Live Mint reported that, State-ru ...
Tuesday, 06 October 09
ASIA COAL-PRICE REBOUND TOWARDS $71 ON TENDER ACTIVITY
Reuters reported that, Prices of power-station coal in Australia, a benchmark for Asia, rose 4 percent in the latest week to near $71 a tonne, bolst ...
Tuesday, 06 October 09
BHARATHI CEMENT TO ADD 2.5 MT CAPACITY BY 2010
Business-Standard reported that, Bharathi Cement Corporation (BCC) commenced its commercial operations from its Nallalingayapalli manufacturing plan ...
Tuesday, 06 October 09
MOZAMBIQUE TO BUILD COAL RAILWAY
BBC reported that, Mozambique's government has announced that it has secured $500m (£313m) to build a new railway line. The transport ministe ...
Tuesday, 06 October 09
COAL INDIA AIMS TO BUY MINE ABROAD BY MARCH
*Coal India to issue its first coal import tender by Nov
*ArcelorMittal, 9 others in race to develop abandoned mines
*52 firms keen to partner coa ...
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- Global Coal Blending Company Limited - Australia
- India Bulls Power Limited - India
- ASAPP Information Group - India
- Billiton Holdings Pty Ltd - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Carbofer General Trading SA - India
- Orica Mining Services - Indonesia
- New Zealand Coal & Carbon
- Global Green Power PLC Corporation, Philippines
- Singapore Mercantile Exchange
- Jaiprakash Power Ventures ltd
- CIMB Investment Bank - Malaysia
- TeaM Sual Corporation - Philippines
- Ambuja Cements Ltd - India
- White Energy Company Limited
- Maharashtra Electricity Regulatory Commission - India
- Samtan Co., Ltd - South Korea
- Sinarmas Energy and Mining - Indonesia
- IEA Clean Coal Centre - UK
- Interocean Group of Companies - India
- Kobexindo Tractors - Indoneisa
- South Luzon Thermal Energy Corporation
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sarangani Energy Corporation, Philippines
- Port Waratah Coal Services - Australia
- Kohat Cement Company Ltd. - Pakistan
- Sakthi Sugars Limited - India
- Kaltim Prima Coal - Indonesia
- Bhushan Steel Limited - India
- Simpson Spence & Young - Indonesia
- The State Trading Corporation of India Ltd
- Wilmar Investment Holdings
- Heidelberg Cement - Germany
- Malabar Cements Ltd - India
- Bangladesh Power Developement Board
- Maheswari Brothers Coal Limited - India
- Eastern Coal Council - USA
- Kepco SPC Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Riau Bara Harum - Indonesia
- Energy Link Ltd, New Zealand
- Ministry of Transport, Egypt
- PetroVietnam Power Coal Import and Supply Company
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Tata Chemicals Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Krishnapatnam Port Company Ltd. - India
- Vijayanagar Sugar Pvt Ltd - India
- Electricity Authority, New Zealand
- Vedanta Resources Plc - India
- ICICI Bank Limited - India
- London Commodity Brokers - England
- Standard Chartered Bank - UAE
- Power Finance Corporation Ltd., India
- Mjunction Services Limited - India
- SMC Global Power, Philippines
- Coal and Oil Company - UAE
- Baramulti Group, Indonesia
- The Treasury - Australian Government
- Eastern Energy - Thailand
- Siam City Cement - Thailand
- Attock Cement Pakistan Limited
- SN Aboitiz Power Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Holcim Trading Pte Ltd - Singapore
- Meenaskhi Energy Private Limited - India
- Chamber of Mines of South Africa
- Karbindo Abesyapradhi - Indoneisa
- Asmin Koalindo Tuhup - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Vizag Seaport Private Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Madhucon Powers Ltd - India
- Ministry of Mines - Canada
- MS Steel International - UAE
- IHS Mccloskey Coal Group - USA
- Neyveli Lignite Corporation Ltd, - India
- TNB Fuel Sdn Bhd - Malaysia
- Price Waterhouse Coopers - Russia
- Aboitiz Power Corporation - Philippines
- Sindya Power Generating Company Private Ltd
- SMG Consultants - Indonesia
- Pendopo Energi Batubara - Indonesia
- Renaissance Capital - South Africa
- Posco Energy - South Korea
- Bayan Resources Tbk. - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Timah Investasi Mineral - Indoneisa
- Goldman Sachs - Singapore
- Africa Commodities Group - South Africa
- Pipit Mutiara Jaya. PT, Indonesia
- Central Java Power - Indonesia
- Gujarat Sidhee Cement - India
- Grasim Industreis Ltd - India
- Lanco Infratech Ltd - India
- PowerSource Philippines DevCo
- Uttam Galva Steels Limited - India
- CNBM International Corporation - China
- Chettinad Cement Corporation Ltd - India
- GMR Energy Limited - India
- Merrill Lynch Commodities Europe
- GVK Power & Infra Limited - India
- Kapuas Tunggal Persada - Indonesia
- Thai Mozambique Logistica
- Sojitz Corporation - Japan
- Barasentosa Lestari - Indonesia
- Anglo American - United Kingdom
- Essar Steel Hazira Ltd - India
- Petron Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Australian Commodity Traders Exchange
- Bhatia International Limited - India
- Borneo Indobara - Indonesia
- Wood Mackenzie - Singapore
- Parliament of New Zealand
- Dalmia Cement Bharat India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Romanian Commodities Exchange
- LBH Netherlands Bv - Netherlands
- Bukit Asam (Persero) Tbk - Indonesia
- Coalindo Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- PTC India Limited - India
- Alfred C Toepfer International GmbH - Germany
- Minerals Council of Australia
- Straits Asia Resources Limited - Singapore
- Electricity Generating Authority of Thailand
- Larsen & Toubro Limited - India
- Thiess Contractors Indonesia
- Miang Besar Coal Terminal - Indonesia
- Savvy Resources Ltd - HongKong
- Binh Thuan Hamico - Vietnam
- Indian Energy Exchange, India
- Mercuria Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Meralco Power Generation, Philippines
- Deloitte Consulting - India
- The University of Queensland
- Australian Coal Association
- AsiaOL BioFuels Corp., Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Bukit Makmur.PT - Indonesia
- Indika Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Iligan Light & Power Inc, Philippines
- Planning Commission, India
- Ministry of Finance - Indonesia
- Antam Resourcindo - Indonesia
- Banpu Public Company Limited - Thailand
- Georgia Ports Authority, United States
- Global Business Power Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Energy Development Corp, Philippines
- Kideco Jaya Agung - Indonesia
- Economic Council, Georgia
- Indo Tambangraya Megah - Indonesia
- Parry Sugars Refinery, India
- Bulk Trading Sa - Switzerland
- Trasteel International SA, Italy
- Independent Power Producers Association of India
- Semirara Mining Corp, Philippines
- Oldendorff Carriers - Singapore
- Makarim & Taira - Indonesia
- Aditya Birla Group - India
- Rio Tinto Coal - Australia
- Kalimantan Lumbung Energi - Indonesia
- PNOC Exploration Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Indogreen Group - Indonesia
- McConnell Dowell - Australia
- Kumho Petrochemical, South Korea
- Manunggal Multi Energi - Indonesia
- OPG Power Generation Pvt Ltd - India
- Indonesian Coal Mining Association
- Sical Logistics Limited - India
- VISA Power Limited - India
- Kartika Selabumi Mining - Indonesia
- Marubeni Corporation - India
- Coastal Gujarat Power Limited - India
- Latin American Coal - Colombia
- Orica Australia Pty. Ltd.
- Mercator Lines Limited - India
- Indian Oil Corporation Limited
- Siam City Cement PLC, Thailand
- Directorate Of Revenue Intelligence - India
- GN Power Mariveles Coal Plant, Philippines
- Bukit Baiduri Energy - Indonesia
- Star Paper Mills Limited - India
- Bharathi Cement Corporation - India
- Agrawal Coal Company - India
- Medco Energi Mining Internasional
- European Bulk Services B.V. - Netherlands
- Sree Jayajothi Cements Limited - India
- Central Electricity Authority - India
- Jindal Steel & Power Ltd - India
- Xindia Steels Limited - India
- Tamil Nadu electricity Board
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Videocon Industries ltd - India
- Mintek Dendrill Indonesia
- Bhoruka Overseas - Indonesia
- Toyota Tsusho Corporation, Japan
- Commonwealth Bank - Australia
- Formosa Plastics Group - Taiwan
- Edison Trading Spa - Italy
- Karaikal Port Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Cement Manufacturers Association - India
- Therma Luzon, Inc, Philippines
- San Jose City I Power Corp, Philippines
- Altura Mining Limited, Indonesia
- Leighton Contractors Pty Ltd - Australia
- Metalloyd Limited - United Kingdom
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