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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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Monday, 05 October 09
SOUTH AFRICAN COAL RISES ON INDIAN BUYING, DOMESTIC DEMAND
Bloomberg reported that, Prices for coal shipped from South Africa’s Richards Bay, site of the world’s largest export terminal for the f ...
Monday, 05 October 09
BANPU EYES INCREASE IN COAL OUTPUT
The Nation reported that, Banpu plans to boost its coal output to 23 million tonnes next year once production begins at the East Block of its Indomi ...
Monday, 05 October 09
COAL TRADING C&O TO INVEST $100 M NEXT YEAR
The Jakarta Post reported that, Coal and Oil (C&0) Group of India plans to invest up to US$100 million in Indonesia next year to acquire coal mi ...
Sunday, 04 October 09
INDONESIAN COAL EXCHANGE FOR PRICE BENCHMARKING IN OFFING
Reuters cited Mr Bob Kamandanu chairman of the Indonesian Coal Producers Association as saying that Indonesia plans to set up a coal exchange to cre ...
Sunday, 04 October 09
GRASIM TO CONSOLIDATE CEMENT BIZ
The Statesman reported that, India's largest cement producer Aditya Birla group today said it would consolidate its cement businesses by merging Gr ...
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- Electricity Authority, New Zealand
- Oldendorff Carriers - Singapore
- Semirara Mining and Power Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ambuja Cements Ltd - India
- Siam City Cement - Thailand
- Globalindo Alam Lestari - Indonesia
- Samtan Co., Ltd - South Korea
- Maharashtra Electricity Regulatory Commission - India
- Global Coal Blending Company Limited - Australia
- Coal and Oil Company - UAE
- Australian Coal Association
- Tamil Nadu electricity Board
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- Planning Commission, India
- The State Trading Corporation of India Ltd
- Price Waterhouse Coopers - Russia
- Grasim Industreis Ltd - India
- Salva Resources Pvt Ltd - India
- Economic Council, Georgia
- Sindya Power Generating Company Private Ltd
- Merrill Lynch Commodities Europe
- Standard Chartered Bank - UAE
- SMC Global Power, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GN Power Mariveles Coal Plant, Philippines
- Manunggal Multi Energi - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Bayan Resources Tbk. - Indonesia
- Maheswari Brothers Coal Limited - India
- Bhoruka Overseas - Indonesia
- Metalloyd Limited - United Kingdom
- Aboitiz Power Corporation - Philippines
- Mjunction Services Limited - India
- Thai Mozambique Logistica
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- MS Steel International - UAE
- Vizag Seaport Private Limited - India
- Orica Mining Services - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Pendopo Energi Batubara - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Coastal Gujarat Power Limited - India
- Carbofer General Trading SA - India
- Meralco Power Generation, Philippines
- Binh Thuan Hamico - Vietnam
- Simpson Spence & Young - Indonesia
- Bukit Baiduri Energy - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Barasentosa Lestari - Indonesia
- Malabar Cements Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Lanco Infratech Ltd - India
- San Jose City I Power Corp, Philippines
- Savvy Resources Ltd - HongKong
- GAC Shipping (India) Pvt Ltd
- Parliament of New Zealand
- Ministry of Finance - Indonesia
- Kaltim Prima Coal - Indonesia
- Videocon Industries ltd - India
- Eastern Coal Council - USA
- Neyveli Lignite Corporation Ltd, - India
- Mintek Dendrill Indonesia
- Makarim & Taira - Indonesia
- Directorate Of Revenue Intelligence - India
- Ministry of Mines - Canada
- Offshore Bulk Terminal Pte Ltd, Singapore
- Orica Australia Pty. Ltd.
- Alfred C Toepfer International GmbH - Germany
- Global Business Power Corporation, Philippines
- Xindia Steels Limited - India
- Deloitte Consulting - India
- Posco Energy - South Korea
- CNBM International Corporation - China
- Central Java Power - Indonesia
- Gujarat Sidhee Cement - India
- Siam City Cement PLC, Thailand
- Bukit Makmur.PT - Indonesia
- Agrawal Coal Company - India
- Edison Trading Spa - Italy
- Banpu Public Company Limited - Thailand
- Intertek Mineral Services - Indonesia
- Cigading International Bulk Terminal - Indonesia
- ASAPP Information Group - India
- Star Paper Mills Limited - India
- Latin American Coal - Colombia
- Interocean Group of Companies - India
- The Treasury - Australian Government
- Sarangani Energy Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Borneo Indobara - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Sical Logistics Limited - India
- Chettinad Cement Corporation Ltd - India
- Georgia Ports Authority, United States
- Indo Tambangraya Megah - Indonesia
- New Zealand Coal & Carbon
- Krishnapatnam Port Company Ltd. - India
- Heidelberg Cement - Germany
- Eastern Energy - Thailand
- Uttam Galva Steels Limited - India
- Formosa Plastics Group - Taiwan
- Electricity Generating Authority of Thailand
- SN Aboitiz Power Inc, Philippines
- Ministry of Transport, Egypt
- PetroVietnam Power Coal Import and Supply Company
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Chamber of Mines of South Africa
- Goldman Sachs - Singapore
- Bharathi Cement Corporation - India
- Independent Power Producers Association of India
- Wood Mackenzie - Singapore
- White Energy Company Limited
- Indonesian Coal Mining Association
- TeaM Sual Corporation - Philippines
- Port Waratah Coal Services - Australia
- Tata Chemicals Ltd - India
- Madhucon Powers Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- LBH Netherlands Bv - Netherlands
- Power Finance Corporation Ltd., India
- IHS Mccloskey Coal Group - USA
- Bulk Trading Sa - Switzerland
- Kalimantan Lumbung Energi - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Altura Mining Limited, Indonesia
- PowerSource Philippines DevCo
- Kideco Jaya Agung - Indonesia
- McConnell Dowell - Australia
- The University of Queensland
- Bhushan Steel Limited - India
- Antam Resourcindo - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Meenaskhi Energy Private Limited - India
- Coalindo Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- GVK Power & Infra Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Karaikal Port Pvt Ltd - India
- Aditya Birla Group - India
- Bangladesh Power Developement Board
- Singapore Mercantile Exchange
- Africa Commodities Group - South Africa
- Indika Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Mercuria Energy - Indonesia
- Larsen & Toubro Limited - India
- Riau Bara Harum - Indonesia
- Minerals Council of Australia
- Ind-Barath Power Infra Limited - India
- London Commodity Brokers - England
- IEA Clean Coal Centre - UK
- CIMB Investment Bank - Malaysia
- Marubeni Corporation - India
- India Bulls Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Baramulti Group, Indonesia
- Ceylon Electricity Board - Sri Lanka
- GMR Energy Limited - India
- European Bulk Services B.V. - Netherlands
- Therma Luzon, Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Medco Energi Mining Internasional
- Indian Oil Corporation Limited
- Bhatia International Limited - India
- Sojitz Corporation - Japan
- Petrochimia International Co. Ltd.- Taiwan
- Semirara Mining Corp, Philippines
- Sakthi Sugars Limited - India
- Mercator Lines Limited - India
- International Coal Ventures Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Billiton Holdings Pty Ltd - Australia
- Thiess Contractors Indonesia
- Global Green Power PLC Corporation, Philippines
- Wilmar Investment Holdings
- Kumho Petrochemical, South Korea
- PTC India Limited - India
- Anglo American - United Kingdom
- Cement Manufacturers Association - India
- VISA Power Limited - India
- Renaissance Capital - South Africa
- Romanian Commodities Exchange
- Indian Energy Exchange, India
- ICICI Bank Limited - India
- Trasteel International SA, Italy
- Energy Link Ltd, New Zealand
- Rashtriya Ispat Nigam Limited - India
- Australian Commodity Traders Exchange
- Leighton Contractors Pty Ltd - Australia
- Commonwealth Bank - Australia
- Holcim Trading Pte Ltd - Singapore
- Jindal Steel & Power Ltd - India
- SMG Consultants - Indonesia
- Dalmia Cement Bharat India
- Essar Steel Hazira Ltd - India
- Toyota Tsusho Corporation, Japan
- Parry Sugars Refinery, India
- Rio Tinto Coal - Australia
- PNOC Exploration Corporation - Philippines
- Indogreen Group - Indonesia
- Energy Development Corp, Philippines
- Kapuas Tunggal Persada - Indonesia
- Kartika Selabumi Mining - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Mineral Development Corp Ltd - India
- Kobexindo Tractors - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Attock Cement Pakistan Limited
- Central Electricity Authority - India
- Petron Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Vedanta Resources Plc - India
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