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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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Friday, 25 September 09
FREIGHT RATE CUTS MAKING SOUTH AFRICAN COAL MORE COMPETITIVE IN ASIAN MARKETS
Mining Weekly reported that, Coaltrans South Africa MD Gerard Strahan highlighted the country’s sudden increase in coal exports to southern Ch ...
Friday, 25 September 09
XSTRATA TO BUILD ITS OWN RAIL CAPACITY TO SHIP AUSTRALIAN COAL
Bloomberg reported that, Xstrata Plc, the world’s largest exporter of coal used by power stations, will establish its own rail haulage capacit ...
Thursday, 24 September 09
INDIA CEMENT CO'S TO AWARD 200,000T COAL TENDER
Reuters reported that, India's biggest cement maker ACC Cement Ltd and Gujarat Ambuja will award on Thursday Sept 25 a tender for 100,000 tonnes ea ...
Thursday, 24 September 09
YUDEAN TO SIGN CO-OPERATION LETTER OF INTENT WITH RUSSIA COAL TRADE COMPANY
In the recent days, Gao Shiqiang, deputy manager of Yudean Group Co., Ltd. went and carried out the friendly talks with SUEK and inked the trade co- ...
Thursday, 24 September 09
ANGLO EYES DOUBLED METALLURGICAL COAL OUTPUT BY 2018
Mining group Anglo American could double its production of coal used for steel making by 2018 if all of its unapproved projects went ahead, the comp ...
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- IHS Mccloskey Coal Group - USA
- White Energy Company Limited
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- CIMB Investment Bank - Malaysia
- Jindal Steel & Power Ltd - India
- Thiess Contractors Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Baramulti Group, Indonesia
- Makarim & Taira - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Salva Resources Pvt Ltd - India
- Port Waratah Coal Services - Australia
- India Bulls Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Global Green Power PLC Corporation, Philippines
- MS Steel International - UAE
- San Jose City I Power Corp, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Tamil Nadu electricity Board
- Global Business Power Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Chettinad Cement Corporation Ltd - India
- Cement Manufacturers Association - India
- Indonesian Coal Mining Association
- Krishnapatnam Port Company Ltd. - India
- ICICI Bank Limited - India
- Bharathi Cement Corporation - India
- Posco Energy - South Korea
- GVK Power & Infra Limited - India
- The State Trading Corporation of India Ltd
- Electricity Generating Authority of Thailand
- Attock Cement Pakistan Limited
- Larsen & Toubro Limited - India
- GAC Shipping (India) Pvt Ltd
- Malabar Cements Ltd - India
- Manunggal Multi Energi - Indonesia
- Indo Tambangraya Megah - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Deloitte Consulting - India
- Dalmia Cement Bharat India
- SN Aboitiz Power Inc, Philippines
- The Treasury - Australian Government
- Australian Commodity Traders Exchange
- Alfred C Toepfer International GmbH - Germany
- Interocean Group of Companies - India
- Ind-Barath Power Infra Limited - India
- Miang Besar Coal Terminal - Indonesia
- Mercator Lines Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Jaiprakash Power Ventures ltd
- Holcim Trading Pte Ltd - Singapore
- Central Electricity Authority - India
- Sree Jayajothi Cements Limited - India
- Romanian Commodities Exchange
- PetroVietnam Power Coal Import and Supply Company
- Trasteel International SA, Italy
- Cigading International Bulk Terminal - Indonesia
- Karaikal Port Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Ministry of Finance - Indonesia
- Merrill Lynch Commodities Europe
- Bhatia International Limited - India
- Banpu Public Company Limited - Thailand
- Petron Corporation, Philippines
- Anglo American - United Kingdom
- SMG Consultants - Indonesia
- Iligan Light & Power Inc, Philippines
- Electricity Authority, New Zealand
- Orica Mining Services - Indonesia
- GMR Energy Limited - India
- Sojitz Corporation - Japan
- Bukit Makmur.PT - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- New Zealand Coal & Carbon
- PTC India Limited - India
- Ceylon Electricity Board - Sri Lanka
- Singapore Mercantile Exchange
- Samtan Co., Ltd - South Korea
- Mjunction Services Limited - India
- Planning Commission, India
- Kartika Selabumi Mining - Indonesia
- Indika Energy - Indonesia
- Marubeni Corporation - India
- Kohat Cement Company Ltd. - Pakistan
- Energy Development Corp, Philippines
- Independent Power Producers Association of India
- Ambuja Cements Ltd - India
- Africa Commodities Group - South Africa
- Coal and Oil Company - UAE
- Siam City Cement - Thailand
- Kideco Jaya Agung - Indonesia
- Mercuria Energy - Indonesia
- The University of Queensland
- Tata Chemicals Ltd - India
- Kepco SPC Power Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Vizag Seaport Private Limited - India
- Bulk Trading Sa - Switzerland
- Antam Resourcindo - Indonesia
- Bukit Baiduri Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Rio Tinto Coal - Australia
- Economic Council, Georgia
- Karbindo Abesyapradhi - Indoneisa
- Power Finance Corporation Ltd., India
- Global Coal Blending Company Limited - Australia
- Aboitiz Power Corporation - Philippines
- Georgia Ports Authority, United States
- CNBM International Corporation - China
- Heidelberg Cement - Germany
- Maharashtra Electricity Regulatory Commission - India
- PNOC Exploration Corporation - Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SMC Global Power, Philippines
- Kobexindo Tractors - Indoneisa
- Uttam Galva Steels Limited - India
- Orica Australia Pty. Ltd.
- Agrawal Coal Company - India
- Formosa Plastics Group - Taiwan
- Semirara Mining and Power Corporation, Philippines
- Sakthi Sugars Limited - India
- Indian Energy Exchange, India
- TeaM Sual Corporation - Philippines
- Bayan Resources Tbk. - Indonesia
- Thai Mozambique Logistica
- Medco Energi Mining Internasional
- Bahari Cakrawala Sebuku - Indonesia
- Parry Sugars Refinery, India
- Coalindo Energy - Indonesia
- Bhushan Steel Limited - India
- Sinarmas Energy and Mining - Indonesia
- Meenaskhi Energy Private Limited - India
- Chamber of Mines of South Africa
- Mintek Dendrill Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Globalindo Alam Lestari - Indonesia
- Bangladesh Power Developement Board
- IEA Clean Coal Centre - UK
- Essar Steel Hazira Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Sindya Power Generating Company Private Ltd
- Directorate General of MIneral and Coal - Indonesia
- VISA Power Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Billiton Holdings Pty Ltd - Australia
- Borneo Indobara - Indonesia
- Ministry of Mines - Canada
- Gujarat Electricity Regulatory Commission - India
- Lanco Infratech Ltd - India
- South Luzon Thermal Energy Corporation
- Vedanta Resources Plc - India
- AsiaOL BioFuels Corp., Philippines
- Barasentosa Lestari - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Mineral Development Corp Ltd - India
- Wood Mackenzie - Singapore
- Wilmar Investment Holdings
- Simpson Spence & Young - Indonesia
- Edison Trading Spa - Italy
- Energy Link Ltd, New Zealand
- Coastal Gujarat Power Limited - India
- Latin American Coal - Colombia
- Jorong Barutama Greston.PT - Indonesia
- Timah Investasi Mineral - Indoneisa
- Straits Asia Resources Limited - Singapore
- Standard Chartered Bank - UAE
- Xindia Steels Limited - India
- Parliament of New Zealand
- LBH Netherlands Bv - Netherlands
- Sical Logistics Limited - India
- Savvy Resources Ltd - HongKong
- Carbofer General Trading SA - India
- Metalloyd Limited - United Kingdom
- London Commodity Brokers - England
- Meralco Power Generation, Philippines
- Aditya Birla Group - India
- Sarangani Energy Corporation, Philippines
- Semirara Mining Corp, Philippines
- Star Paper Mills Limited - India
- Pendopo Energi Batubara - Indonesia
- Goldman Sachs - Singapore
- ASAPP Information Group - India
- Intertek Mineral Services - Indonesia
- Indogreen Group - Indonesia
- Grasim Industreis Ltd - India
- Kumho Petrochemical, South Korea
- Altura Mining Limited, Indonesia
- McConnell Dowell - Australia
- OPG Power Generation Pvt Ltd - India
- Central Java Power - Indonesia
- Riau Bara Harum - Indonesia
- Indian Oil Corporation Limited
- Siam City Cement PLC, Thailand
- Eastern Energy - Thailand
- International Coal Ventures Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Price Waterhouse Coopers - Russia
- Ministry of Transport, Egypt
- Minerals Council of Australia
- Toyota Tsusho Corporation, Japan
- Eastern Coal Council - USA
- Madhucon Powers Ltd - India
- Binh Thuan Hamico - Vietnam
- Videocon Industries ltd - India
- Oldendorff Carriers - Singapore
- Commonwealth Bank - Australia
- Australian Coal Association
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kaltim Prima Coal - Indonesia
- Renaissance Capital - South Africa
- Gujarat Sidhee Cement - India
- Therma Luzon, Inc, Philippines
- PowerSource Philippines DevCo
- Neyveli Lignite Corporation Ltd, - India
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