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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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Thursday, 24 September 09
S.KOREA HYUNDAI STEEL TO BUY COAL FROM SIBERIA
Reuters reported that, South Korea's Hyundai Steel said on Wednesday it will buy a maximum of 300,000 tonnes of coal per year from Siberian Anthrac ...
Thursday, 24 September 09
NO IMPORTED COAL-BASED UMPPS: TATA POWER
Will wait until policy environment becomes more favourable.
Business Standard reported that, Tata Power Company (TPC), India’s largest priv ...
Thursday, 24 September 09
BUMI RAISES $1.9 BILLION SELLING DEBT TO CHINA'S CIC
Bloomberg reported that, PT Bumi Resources, Indonesia’s biggest coal producer, said it raised $1.9 billion selling debt to China’s sover ...
Thursday, 24 September 09
MACQUARIE DOWNGRADES U.S. COAL SECTOR TO NEUTRAL
Reuters reported that, Macquarie Research downgraded the U.S. coal sector to "neutral" from "overweight" as it believes that dem ...
Thursday, 24 September 09
CHINA WILL BE IMPORTER OF COKING COAL NEXT YEAR, MCCLOSKEY SAYS
Bloomberg reported that, China, the world’s largest coal user and producer, will remain an importer of the fuel through next year, according t ...
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- AsiaOL BioFuels Corp., Philippines
- Indogreen Group - Indonesia
- Indian Energy Exchange, India
- Bukit Makmur.PT - Indonesia
- Posco Energy - South Korea
- Eastern Coal Council - USA
- Maheswari Brothers Coal Limited - India
- Dalmia Cement Bharat India
- Petron Corporation, Philippines
- ASAPP Information Group - India
- Jorong Barutama Greston.PT - Indonesia
- Cement Manufacturers Association - India
- Indian Oil Corporation Limited
- Madhucon Powers Ltd - India
- Manunggal Multi Energi - Indonesia
- Orica Australia Pty. Ltd.
- Bhatia International Limited - India
- Grasim Industreis Ltd - India
- Indika Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Central Java Power - Indonesia
- Kaltim Prima Coal - Indonesia
- Semirara Mining Corp, Philippines
- Romanian Commodities Exchange
- Bank of Tokyo Mitsubishi UFJ Ltd
- Thiess Contractors Indonesia
- Bharathi Cement Corporation - India
- Agrawal Coal Company - India
- IHS Mccloskey Coal Group - USA
- Coastal Gujarat Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- Antam Resourcindo - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Straits Asia Resources Limited - Singapore
- Planning Commission, India
- Renaissance Capital - South Africa
- Siam City Cement PLC, Thailand
- Thai Mozambique Logistica
- Siam City Cement - Thailand
- Karaikal Port Pvt Ltd - India
- Videocon Industries ltd - India
- Altura Mining Limited, Indonesia
- ICICI Bank Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Coalindo Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Iligan Light & Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Attock Cement Pakistan Limited
- London Commodity Brokers - England
- Salva Resources Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Wood Mackenzie - Singapore
- Holcim Trading Pte Ltd - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Baiduri Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Chamber of Mines of South Africa
- Karbindo Abesyapradhi - Indoneisa
- Eastern Energy - Thailand
- Interocean Group of Companies - India
- Mercuria Energy - Indonesia
- Edison Trading Spa - Italy
- Makarim & Taira - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Kumho Petrochemical, South Korea
- Tamil Nadu electricity Board
- Petrochimia International Co. Ltd.- Taiwan
- Ministry of Mines - Canada
- The State Trading Corporation of India Ltd
- Meralco Power Generation, Philippines
- Mintek Dendrill Indonesia
- Kepco SPC Power Corporation, Philippines
- Malabar Cements Ltd - India
- Global Green Power PLC Corporation, Philippines
- McConnell Dowell - Australia
- Chettinad Cement Corporation Ltd - India
- SMG Consultants - Indonesia
- Oldendorff Carriers - Singapore
- Electricity Generating Authority of Thailand
- Singapore Mercantile Exchange
- Pendopo Energi Batubara - Indonesia
- Parliament of New Zealand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Business Power Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Miang Besar Coal Terminal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- IEA Clean Coal Centre - UK
- Trasteel International SA, Italy
- Ceylon Electricity Board - Sri Lanka
- Jindal Steel & Power Ltd - India
- Uttam Galva Steels Limited - India
- Coal and Oil Company - UAE
- Ministry of Finance - Indonesia
- Xindia Steels Limited - India
- Savvy Resources Ltd - HongKong
- Sakthi Sugars Limited - India
- Indonesian Coal Mining Association
- Directorate Of Revenue Intelligence - India
- Tata Chemicals Ltd - India
- Meenaskhi Energy Private Limited - India
- Binh Thuan Hamico - Vietnam
- Australian Commodity Traders Exchange
- Marubeni Corporation - India
- Baramulti Group, Indonesia
- TeaM Sual Corporation - Philippines
- GMR Energy Limited - India
- Gujarat Sidhee Cement - India
- Orica Mining Services - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Vedanta Resources Plc - India
- Rashtriya Ispat Nigam Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- VISA Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GVK Power & Infra Limited - India
- Barasentosa Lestari - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Samtan Co., Ltd - South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Anglo American - United Kingdom
- Central Electricity Authority - India
- South Luzon Thermal Energy Corporation
- Mjunction Services Limited - India
- Price Waterhouse Coopers - Russia
- Carbofer General Trading SA - India
- Asmin Koalindo Tuhup - Indonesia
- Star Paper Mills Limited - India
- International Coal Ventures Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Electricity Authority, New Zealand
- Ambuja Cements Ltd - India
- PNOC Exploration Corporation - Philippines
- Bhushan Steel Limited - India
- Latin American Coal - Colombia
- SMC Global Power, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Heidelberg Cement - Germany
- Intertek Mineral Services - Indonesia
- Sarangani Energy Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Goldman Sachs - Singapore
- CIMB Investment Bank - Malaysia
- Maharashtra Electricity Regulatory Commission - India
- Merrill Lynch Commodities Europe
- Minerals Council of Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Australian Coal Association
- Bahari Cakrawala Sebuku - Indonesia
- Port Waratah Coal Services - Australia
- Bulk Trading Sa - Switzerland
- Africa Commodities Group - South Africa
- Global Coal Blending Company Limited - Australia
- Krishnapatnam Port Company Ltd. - India
- Borneo Indobara - Indonesia
- New Zealand Coal & Carbon
- Formosa Plastics Group - Taiwan
- Timah Investasi Mineral - Indoneisa
- European Bulk Services B.V. - Netherlands
- Kartika Selabumi Mining - Indonesia
- Sindya Power Generating Company Private Ltd
- India Bulls Power Limited - India
- Lanco Infratech Ltd - India
- Medco Energi Mining Internasional
- Leighton Contractors Pty Ltd - Australia
- Commonwealth Bank - Australia
- Georgia Ports Authority, United States
- Aditya Birla Group - India
- Economic Council, Georgia
- Therma Luzon, Inc, Philippines
- PTC India Limited - India
- Globalindo Alam Lestari - Indonesia
- Larsen & Toubro Limited - India
- SN Aboitiz Power Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- LBH Netherlands Bv - Netherlands
- Ministry of Transport, Egypt
- Rio Tinto Coal - Australia
- Bangladesh Power Developement Board
- Riau Bara Harum - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Jaiprakash Power Ventures ltd
- MS Steel International - UAE
- Power Finance Corporation Ltd., India
- Parry Sugars Refinery, India
- Kapuas Tunggal Persada - Indonesia
- CNBM International Corporation - China
- Mercator Lines Limited - India
- Banpu Public Company Limited - Thailand
- Standard Chartered Bank - UAE
- Deloitte Consulting - India
- Sree Jayajothi Cements Limited - India
- White Energy Company Limited
- Kobexindo Tractors - Indoneisa
- Cigading International Bulk Terminal - Indonesia
- PowerSource Philippines DevCo
- Energy Development Corp, Philippines
- Independent Power Producers Association of India
- Alfred C Toepfer International GmbH - Germany
- San Jose City I Power Corp, Philippines
- Vizag Seaport Private Limited - India
- Bayan Resources Tbk. - Indonesia
- Indo Tambangraya Megah - Indonesia
- Bhoruka Overseas - Indonesia
- Sical Logistics Limited - India
- Kideco Jaya Agung - Indonesia
- Wilmar Investment Holdings
- The University of Queensland
- Billiton Holdings Pty Ltd - Australia
- Toyota Tsusho Corporation, Japan
- Sojitz Corporation - Japan
- The Treasury - Australian Government
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