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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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Tuesday, 22 September 09
AUSTRALIA SEES HIGHER ASIAN THERMAL COAL IMPORTS
* Asia '09 imports to rise 3.5%, vs pvs f'cast of 3.3% fall
* Asia 2010 thermal coal imports expected to rise 6.3 pct
* China to become net im ...
Tuesday, 22 September 09
PANAMA CANAL EXPANSION MAY AID COLOMBIA COAL TO ASIA
* Colombia producers hope for growth in Asia shipments
* Panama Canal will allow smaller coal Capesize vessels
* Australia, Indonesia to remain bi ...
Monday, 21 September 09
ACCC SET TO APPROVE NEWCASTLE COAL SHIPPING AGREEMENT
ABC reported that, The competition regulator says it is likely to approve a new agreement over coal loading arrangements at Newcastle.
Australian ...
Friday, 18 September 09
PEABODY ENERGY ESTABLISHES ASIAN COAL TRADING HUB IN SINGAPORE
Peabody Energy announced it has opened an office in Singapore that will serve as the new hub for Peabody COALTRADE International activities in South ...
Friday, 18 September 09
AUSTRALIA NEWCASTLE COAL PORT: SEEKS INTERIM QUOTA SYSTEM
Reuters reported that, Australia's Newcastle coal terminal wants to re-introduce an interim export quota system after a group of miners led by BHP ...
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- Sree Jayajothi Cements Limited - India
- Vizag Seaport Private Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Neyveli Lignite Corporation Ltd, - India
- Tata Chemicals Ltd - India
- Central Java Power - Indonesia
- Independent Power Producers Association of India
- Borneo Indobara - Indonesia
- Electricity Generating Authority of Thailand
- TeaM Sual Corporation - Philippines
- Altura Mining Limited, Indonesia
- Lanco Infratech Ltd - India
- South Luzon Thermal Energy Corporation
- San Jose City I Power Corp, Philippines
- Medco Energi Mining Internasional
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Singapore Mercantile Exchange
- Jaiprakash Power Ventures ltd
- Miang Besar Coal Terminal - Indonesia
- Romanian Commodities Exchange
- Indonesian Coal Mining Association
- Kalimantan Lumbung Energi - Indonesia
- Thiess Contractors Indonesia
- Posco Energy - South Korea
- Chamber of Mines of South Africa
- Samtan Co., Ltd - South Korea
- Gujarat Sidhee Cement - India
- GMR Energy Limited - India
- Karaikal Port Pvt Ltd - India
- Star Paper Mills Limited - India
- The Treasury - Australian Government
- Energy Development Corp, Philippines
- Iligan Light & Power Inc, Philippines
- Rio Tinto Coal - Australia
- Kapuas Tunggal Persada - Indonesia
- Salva Resources Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Coal and Oil Company - UAE
- MS Steel International - UAE
- Indika Energy - Indonesia
- PNOC Exploration Corporation - Philippines
- Mintek Dendrill Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Jindal Steel & Power Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Billiton Holdings Pty Ltd - Australia
- GAC Shipping (India) Pvt Ltd
- Meralco Power Generation, Philippines
- Orica Mining Services - Indonesia
- Wood Mackenzie - Singapore
- Petron Corporation, Philippines
- The State Trading Corporation of India Ltd
- CIMB Investment Bank - Malaysia
- Marubeni Corporation - India
- Agrawal Coal Company - India
- Simpson Spence & Young - Indonesia
- Georgia Ports Authority, United States
- Kobexindo Tractors - Indoneisa
- PetroVietnam Power Coal Import and Supply Company
- Kepco SPC Power Corporation, Philippines
- Coalindo Energy - Indonesia
- Central Electricity Authority - India
- SMG Consultants - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Ministry of Mines - Canada
- Kideco Jaya Agung - Indonesia
- Ministry of Transport, Egypt
- Cigading International Bulk Terminal - Indonesia
- Savvy Resources Ltd - HongKong
- Trasteel International SA, Italy
- Ind-Barath Power Infra Limited - India
- Holcim Trading Pte Ltd - Singapore
- Dalmia Cement Bharat India
- Heidelberg Cement - Germany
- Price Waterhouse Coopers - Russia
- Bayan Resources Tbk. - Indonesia
- Ministry of Finance - Indonesia
- Planning Commission, India
- New Zealand Coal & Carbon
- Australian Coal Association
- Port Waratah Coal Services - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Kumho Petrochemical, South Korea
- Electricity Authority, New Zealand
- Alfred C Toepfer International GmbH - Germany
- Mercator Lines Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Larsen & Toubro Limited - India
- Interocean Group of Companies - India
- Indo Tambangraya Megah - Indonesia
- Parry Sugars Refinery, India
- Bahari Cakrawala Sebuku - Indonesia
- Coastal Gujarat Power Limited - India
- SN Aboitiz Power Inc, Philippines
- Africa Commodities Group - South Africa
- Merrill Lynch Commodities Europe
- Chettinad Cement Corporation Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bulk Trading Sa - Switzerland
- Videocon Industries ltd - India
- Anglo American - United Kingdom
- Binh Thuan Hamico - Vietnam
- Xindia Steels Limited - India
- Australian Commodity Traders Exchange
- Bukit Asam (Persero) Tbk - Indonesia
- Meenaskhi Energy Private Limited - India
- McConnell Dowell - Australia
- Thai Mozambique Logistica
- Uttam Galva Steels Limited - India
- Commonwealth Bank - Australia
- Bhatia International Limited - India
- Manunggal Multi Energi - Indonesia
- Essar Steel Hazira Ltd - India
- Orica Australia Pty. Ltd.
- Vijayanagar Sugar Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Kartika Selabumi Mining - Indonesia
- India Bulls Power Limited - India
- ICICI Bank Limited - India
- Banpu Public Company Limited - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- IEA Clean Coal Centre - UK
- White Energy Company Limited
- Eastern Energy - Thailand
- Barasentosa Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sakthi Sugars Limited - India
- Tamil Nadu electricity Board
- Sindya Power Generating Company Private Ltd
- Oldendorff Carriers - Singapore
- PTC India Limited - India
- Baramulti Group, Indonesia
- Standard Chartered Bank - UAE
- ASAPP Information Group - India
- Aditya Birla Group - India
- Bukit Makmur.PT - Indonesia
- Antam Resourcindo - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- PowerSource Philippines DevCo
- Bharathi Cement Corporation - India
- Semirara Mining Corp, Philippines
- Bhoruka Overseas - Indonesia
- OPG Power Generation Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Latin American Coal - Colombia
- Therma Luzon, Inc, Philippines
- Makarim & Taira - Indonesia
- Sical Logistics Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Economic Council, Georgia
- Aboitiz Power Corporation - Philippines
- Kohat Cement Company Ltd. - Pakistan
- Sojitz Corporation - Japan
- Global Business Power Corporation, Philippines
- Mercuria Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Attock Cement Pakistan Limited
- Power Finance Corporation Ltd., India
- Eastern Coal Council - USA
- Timah Investasi Mineral - Indoneisa
- Globalindo Alam Lestari - Indonesia
- Siam City Cement - Thailand
- Toyota Tsusho Corporation, Japan
- Malabar Cements Ltd - India
- Siam City Cement PLC, Thailand
- The University of Queensland
- GN Power Mariveles Coal Plant, Philippines
- Rashtriya Ispat Nigam Limited - India
- Indian Oil Corporation Limited
- Bukit Baiduri Energy - Indonesia
- Directorate Of Revenue Intelligence - India
- Krishnapatnam Port Company Ltd. - India
- Intertek Mineral Services - Indonesia
- Vedanta Resources Plc - India
- Pipit Mutiara Jaya. PT, Indonesia
- Parliament of New Zealand
- Formosa Plastics Group - Taiwan
- European Bulk Services B.V. - Netherlands
- CNBM International Corporation - China
- Indogreen Group - Indonesia
- Sarangani Energy Corporation, Philippines
- Bhushan Steel Limited - India
- Global Green Power PLC Corporation, Philippines
- SMC Global Power, Philippines
- Mjunction Services Limited - India
- London Commodity Brokers - England
- Semirara Mining and Power Corporation, Philippines
- Goldman Sachs - Singapore
- Bangladesh Power Developement Board
- Cement Manufacturers Association - India
- Gujarat Electricity Regulatory Commission - India
- VISA Power Limited - India
- Carbofer General Trading SA - India
- Deloitte Consulting - India
- Kaltim Prima Coal - Indonesia
- Renaissance Capital - South Africa
- Edison Trading Spa - Italy
- GVK Power & Infra Limited - India
- Energy Link Ltd, New Zealand
- Indian Energy Exchange, India
- LBH Netherlands Bv - Netherlands
- Maheswari Brothers Coal Limited - India
- Minerals Council of Australia
- Petrochimia International Co. Ltd.- Taiwan
- Wilmar Investment Holdings
- International Coal Ventures Pvt Ltd - India
- Madhucon Powers Ltd - India
- Grasim Industreis Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Riau Bara Harum - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Metalloyd Limited - United Kingdom
- Ambuja Cements Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Ceylon Electricity Board - Sri Lanka
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