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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, 30 September 09
COKING COAL PRICES MAY TOUCH $200/TN IN 2010-11
Business Standard reported that, Driven by surge in imports of coking coal by China, growth in Japanese steel output and signs of recovery in the In ...
Wednesday, 30 September 09
PURNOMO BIDS 'GOODBYE' TO ENERGY MINISTRY
The Jakarta globe reported that, In what could be construed as a resignation speech from a government official — but perhaps wasn’t &mda ...
Tuesday, 29 September 09
MINING AND ENERGY DAY 2009
The Minister of Energy and Mineral Resources, Purnomo Yusgiantoro led the ceremony marking 2009 Mining and Energy Day celebrations, held at the Depa ...
Tuesday, 29 September 09
BUKIT ASAM REDUCES ITS SALES TARGET
Tempo Interactive reported that, PT Tambang Batubara Bukit Asam Tbk has decided to reduce its sales target this year from 14.5 million tons of coal ...
Monday, 28 September 09
INDONESIA UNLIKELY TO PASS NEW MINING RULES IN 2009
Reuters reported that, Indonesia is unlikely to complete final regulations attached to a new mining and coal law this year, an official said on Mond ...
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- Altura Mining Limited, Indonesia
- Grasim Industreis Ltd - India
- Kapuas Tunggal Persada - Indonesia
- SMC Global Power, Philippines
- Kartika Selabumi Mining - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- New Zealand Coal & Carbon
- Ministry of Transport, Egypt
- Intertek Mineral Services - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Malabar Cements Ltd - India
- Timah Investasi Mineral - Indoneisa
- Oldendorff Carriers - Singapore
- Kaltim Prima Coal - Indonesia
- Medco Energi Mining Internasional
- PetroVietnam Power Coal Import and Supply Company
- Karbindo Abesyapradhi - Indoneisa
- Sindya Power Generating Company Private Ltd
- Thai Mozambique Logistica
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Coalindo Energy - Indonesia
- Electricity Authority, New Zealand
- IHS Mccloskey Coal Group - USA
- Trasteel International SA, Italy
- Mjunction Services Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Interocean Group of Companies - India
- Thiess Contractors Indonesia
- OPG Power Generation Pvt Ltd - India
- Videocon Industries ltd - India
- Ambuja Cements Ltd - India
- Indonesian Coal Mining Association
- International Coal Ventures Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Indian Oil Corporation Limited
- Maharashtra Electricity Regulatory Commission - India
- ICICI Bank Limited - India
- Meenaskhi Energy Private Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- The Treasury - Australian Government
- Gujarat Electricity Regulatory Commission - India
- Therma Luzon, Inc, Philippines
- Global Business Power Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Standard Chartered Bank - UAE
- Ind-Barath Power Infra Limited - India
- Semirara Mining Corp, Philippines
- Sical Logistics Limited - India
- Tata Chemicals Ltd - India
- Mercuria Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Madhucon Powers Ltd - India
- McConnell Dowell - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Riau Bara Harum - Indonesia
- Wilmar Investment Holdings
- Bhatia International Limited - India
- Essar Steel Hazira Ltd - India
- Globalindo Alam Lestari - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Jindal Steel & Power Ltd - India
- Uttam Galva Steels Limited - India
- GVK Power & Infra Limited - India
- Holcim Trading Pte Ltd - Singapore
- Indian Energy Exchange, India
- Krishnapatnam Port Company Ltd. - India
- Barasentosa Lestari - Indonesia
- Indo Tambangraya Megah - Indonesia
- Toyota Tsusho Corporation, Japan
- Billiton Holdings Pty Ltd - Australia
- ASAPP Information Group - India
- Price Waterhouse Coopers - Russia
- Planning Commission, India
- Marubeni Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- Agrawal Coal Company - India
- Eastern Coal Council - USA
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bhushan Steel Limited - India
- Sarangani Energy Corporation, Philippines
- Meralco Power Generation, Philippines
- Attock Cement Pakistan Limited
- Aboitiz Power Corporation - Philippines
- Energy Development Corp, Philippines
- Vedanta Resources Plc - India
- South Luzon Thermal Energy Corporation
- CIMB Investment Bank - Malaysia
- Straits Asia Resources Limited - Singapore
- Carbofer General Trading SA - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Siam City Cement - Thailand
- SN Aboitiz Power Inc, Philippines
- Heidelberg Cement - Germany
- Petron Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Lanco Infratech Ltd - India
- Independent Power Producers Association of India
- Directorate Of Revenue Intelligence - India
- Jaiprakash Power Ventures ltd
- Rashtriya Ispat Nigam Limited - India
- Kideco Jaya Agung - Indonesia
- Aditya Birla Group - India
- Power Finance Corporation Ltd., India
- MS Steel International - UAE
- Deloitte Consulting - India
- Mercator Lines Limited - India
- Chettinad Cement Corporation Ltd - India
- Maheswari Brothers Coal Limited - India
- Ceylon Electricity Board - Sri Lanka
- Bharathi Cement Corporation - India
- Kumho Petrochemical, South Korea
- Gujarat Mineral Development Corp Ltd - India
- Pendopo Energi Batubara - Indonesia
- Mintek Dendrill Indonesia
- Electricity Generating Authority of Thailand
- Baramulti Group, Indonesia
- AsiaOL BioFuels Corp., Philippines
- CNBM International Corporation - China
- Bukit Baiduri Energy - Indonesia
- Central Electricity Authority - India
- Africa Commodities Group - South Africa
- Tamil Nadu electricity Board
- The State Trading Corporation of India Ltd
- Georgia Ports Authority, United States
- Coastal Gujarat Power Limited - India
- Orica Australia Pty. Ltd.
- Cigading International Bulk Terminal - Indonesia
- Bangladesh Power Developement Board
- Gujarat Sidhee Cement - India
- European Bulk Services B.V. - Netherlands
- Banpu Public Company Limited - Thailand
- Vizag Seaport Private Limited - India
- Sree Jayajothi Cements Limited - India
- Romanian Commodities Exchange
- Australian Commodity Traders Exchange
- VISA Power Limited - India
- San Jose City I Power Corp, Philippines
- Iligan Light & Power Inc, Philippines
- Rio Tinto Coal - Australia
- Xindia Steels Limited - India
- Larsen & Toubro Limited - India
- Australian Coal Association
- Coal and Oil Company - UAE
- Global Coal Blending Company Limited - Australia
- Sinarmas Energy and Mining - Indonesia
- Posco Energy - South Korea
- Central Java Power - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- The University of Queensland
- Edison Trading Spa - Italy
- GAC Shipping (India) Pvt Ltd
- Indika Energy - Indonesia
- Antam Resourcindo - Indonesia
- Bukit Makmur.PT - Indonesia
- Eastern Energy - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- PNOC Exploration Corporation - Philippines
- Manunggal Multi Energi - Indonesia
- Anglo American - United Kingdom
- Formosa Plastics Group - Taiwan
- Merrill Lynch Commodities Europe
- Economic Council, Georgia
- Kalimantan Lumbung Energi - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Sojitz Corporation - Japan
- Salva Resources Pvt Ltd - India
- Latin American Coal - Colombia
- Metalloyd Limited - United Kingdom
- Bulk Trading Sa - Switzerland
- Neyveli Lignite Corporation Ltd, - India
- Indogreen Group - Indonesia
- India Bulls Power Limited - India
- Karaikal Port Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Goldman Sachs - Singapore
- Cement Manufacturers Association - India
- Star Paper Mills Limited - India
- Energy Link Ltd, New Zealand
- Samtan Co., Ltd - South Korea
- Bhoruka Overseas - Indonesia
- LBH Netherlands Bv - Netherlands
- White Energy Company Limited
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Borneo Indobara - Indonesia
- PowerSource Philippines DevCo
- Siam City Cement PLC, Thailand
- Global Green Power PLC Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Ministry of Finance - Indonesia
- Dalmia Cement Bharat India
- Kepco SPC Power Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Wood Mackenzie - Singapore
- IEA Clean Coal Centre - UK
- Renaissance Capital - South Africa
- TNB Fuel Sdn Bhd - Malaysia
- Makarim & Taira - Indonesia
- Ministry of Mines - Canada
- Parry Sugars Refinery, India
- GMR Energy Limited - India
- SMG Consultants - Indonesia
- Binh Thuan Hamico - Vietnam
- Bank of Tokyo Mitsubishi UFJ Ltd
- Orica Mining Services - Indonesia
- Singapore Mercantile Exchange
- Sakthi Sugars Limited - India
- Chamber of Mines of South Africa
- Simpson Spence & Young - Indonesia
- Port Waratah Coal Services - Australia
- Parliament of New Zealand
- London Commodity Brokers - England
- Commonwealth Bank - Australia
- PTC India Limited - India
- Minerals Council of Australia
- Bukit Asam (Persero) Tbk - Indonesia
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