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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, 18 September 09
STANCHART TO ADVISE BAYAN ON INDONESIA COAL FINANCING
Indonesian coal miner PT Bayan Resources Tbk said on Wednesday it has appointed Standard Chartered Bank as a financial adviser for raising at least ...
Friday, 18 September 09
COKING COAL SUPPLY TO FALL 3 MILLION TONS IN CHINA ON SHUTDOWN
Bloomberg reported that, Coking coal supply in China, the largest consumer, may fall by 3 million metric tons a month after a mine accident this mon ...
Thursday, 17 September 09
FOUR LEFT IN INDIA'S MMTC COAL IMPORT TENDER-SOURCE
Reuters reported that, India's MMTC Ltd has accepted four out of five submissions for an import tender for 12.5 million tonnes of coal, with a bid ...
Thursday, 17 September 09
INDIA SEEKS COAL
IBT commodities reported that, India is on a coal buying spree. The big Asian nation is scrambling to cover an expected shortfall in domestic supply ...
Wednesday, 16 September 09
S. LANKA, INDIA'S NTPC TO SIGN $500 MLN COAL DEAL
Reuters reported that, Sri Lanka is to sign a commercial agreement with India's National Thermal Power Corporation (NTPC.BO) to build a $500 millio ...
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- Global Coal Blending Company Limited - Australia
- Eastern Energy - Thailand
- Electricity Generating Authority of Thailand
- Global Business Power Corporation, Philippines
- Independent Power Producers Association of India
- GMR Energy Limited - India
- Merrill Lynch Commodities Europe
- Timah Investasi Mineral - Indoneisa
- Simpson Spence & Young - Indonesia
- Salva Resources Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- ASAPP Information Group - India
- The University of Queensland
- Price Waterhouse Coopers - Russia
- Globalindo Alam Lestari - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Petron Corporation, Philippines
- Anglo American - United Kingdom
- PowerSource Philippines DevCo
- Malabar Cements Ltd - India
- South Luzon Thermal Energy Corporation
- Antam Resourcindo - Indonesia
- Bayan Resources Tbk. - Indonesia
- SMC Global Power, Philippines
- Indo Tambangraya Megah - Indonesia
- Therma Luzon, Inc, Philippines
- Renaissance Capital - South Africa
- Grasim Industreis Ltd - India
- Thai Mozambique Logistica
- Bhatia International Limited - India
- Siam City Cement - Thailand
- SN Aboitiz Power Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Tamil Nadu electricity Board
- Sree Jayajothi Cements Limited - India
- Cement Manufacturers Association - India
- Mercuria Energy - Indonesia
- PNOC Exploration Corporation - Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- International Coal Ventures Pvt Ltd - India
- Energy Development Corp, Philippines
- Australian Commodity Traders Exchange
- Australian Coal Association
- Bukit Asam (Persero) Tbk - Indonesia
- Sarangani Energy Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Minerals Council of Australia
- Ind-Barath Power Infra Limited - India
- Meenaskhi Energy Private Limited - India
- White Energy Company Limited
- Dalmia Cement Bharat India
- Asmin Koalindo Tuhup - Indonesia
- Samtan Co., Ltd - South Korea
- CIMB Investment Bank - Malaysia
- Wilmar Investment Holdings
- Formosa Plastics Group - Taiwan
- Uttam Galva Steels Limited - India
- Commonwealth Bank - Australia
- Maheswari Brothers Coal Limited - India
- Videocon Industries ltd - India
- Chettinad Cement Corporation Ltd - India
- Marubeni Corporation - India
- Sical Logistics Limited - India
- Interocean Group of Companies - India
- Karaikal Port Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Jaiprakash Power Ventures ltd
- McConnell Dowell - Australia
- Kumho Petrochemical, South Korea
- SMG Consultants - Indonesia
- Ceylon Electricity Board - Sri Lanka
- New Zealand Coal & Carbon
- Global Green Power PLC Corporation, Philippines
- Electricity Authority, New Zealand
- Bhoruka Overseas - Indonesia
- Tata Chemicals Ltd - India
- Oldendorff Carriers - Singapore
- IEA Clean Coal Centre - UK
- Gujarat Sidhee Cement - India
- Wood Mackenzie - Singapore
- Barasentosa Lestari - Indonesia
- Heidelberg Cement - Germany
- Bhushan Steel Limited - India
- Economic Council, Georgia
- Kaltim Prima Coal - Indonesia
- Eastern Coal Council - USA
- Indian Energy Exchange, India
- Makarim & Taira - Indonesia
- Attock Cement Pakistan Limited
- Central Electricity Authority - India
- Directorate General of MIneral and Coal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Larsen & Toubro Limited - India
- Billiton Holdings Pty Ltd - Australia
- Singapore Mercantile Exchange
- CNBM International Corporation - China
- Essar Steel Hazira Ltd - India
- Ministry of Transport, Egypt
- Bharathi Cement Corporation - India
- Iligan Light & Power Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- Ministry of Mines - Canada
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indonesian Coal Mining Association
- The Treasury - Australian Government
- Africa Commodities Group - South Africa
- Metalloyd Limited - United Kingdom
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bulk Trading Sa - Switzerland
- TNB Fuel Sdn Bhd - Malaysia
- Central Java Power - Indonesia
- IHS Mccloskey Coal Group - USA
- Kalimantan Lumbung Energi - Indonesia
- Bangladesh Power Developement Board
- Baramulti Group, Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- AsiaOL BioFuels Corp., Philippines
- Kapuas Tunggal Persada - Indonesia
- The State Trading Corporation of India Ltd
- PTC India Limited - India
- Chamber of Mines of South Africa
- Power Finance Corporation Ltd., India
- Indian Oil Corporation Limited
- GAC Shipping (India) Pvt Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Medco Energi Mining Internasional
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Aditya Birla Group - India
- Sojitz Corporation - Japan
- Coal and Oil Company - UAE
- Coastal Gujarat Power Limited - India
- ICICI Bank Limited - India
- Ministry of Finance - Indonesia
- San Jose City I Power Corp, Philippines
- Kepco SPC Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Binh Thuan Hamico - Vietnam
- Riau Bara Harum - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Lanco Infratech Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Rio Tinto Coal - Australia
- Directorate Of Revenue Intelligence - India
- Bukit Makmur.PT - Indonesia
- Planning Commission, India
- Madhucon Powers Ltd - India
- Energy Link Ltd, New Zealand
- Meralco Power Generation, Philippines
- Agrawal Coal Company - India
- Siam City Cement PLC, Thailand
- Maharashtra Electricity Regulatory Commission - India
- Jindal Steel & Power Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kohat Cement Company Ltd. - Pakistan
- Standard Chartered Bank - UAE
- Parliament of New Zealand
- Savvy Resources Ltd - HongKong
- GVK Power & Infra Limited - India
- Orica Mining Services - Indonesia
- Gujarat Electricity Regulatory Commission - India
- MS Steel International - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- India Bulls Power Limited - India
- Semirara Mining Corp, Philippines
- Mjunction Services Limited - India
- OPG Power Generation Pvt Ltd - India
- Orica Australia Pty. Ltd.
- Kobexindo Tractors - Indoneisa
- Krishnapatnam Port Company Ltd. - India
- Rashtriya Ispat Nigam Limited - India
- Trasteel International SA, Italy
- Alfred C Toepfer International GmbH - Germany
- Kideco Jaya Agung - Indonesia
- Star Paper Mills Limited - India
- London Commodity Brokers - England
- Goldman Sachs - Singapore
- Bukit Baiduri Energy - Indonesia
- Borneo Indobara - Indonesia
- Vedanta Resources Plc - India
- Cigading International Bulk Terminal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Bahari Cakrawala Sebuku - Indonesia
- Vizag Seaport Private Limited - India
- Carbofer General Trading SA - India
- Manunggal Multi Energi - Indonesia
- Semirara Mining and Power Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- Ambuja Cements Ltd - India
- TeaM Sual Corporation - Philippines
- Parry Sugars Refinery, India
- Latin American Coal - Colombia
- Aboitiz Power Corporation - Philippines
- Altura Mining Limited, Indonesia
- Indogreen Group - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Pendopo Energi Batubara - Indonesia
- Edison Trading Spa - Italy
- Leighton Contractors Pty Ltd - Australia
- GN Power Mariveles Coal Plant, Philippines
- Thiess Contractors Indonesia
- Mintek Dendrill Indonesia
- Sindya Power Generating Company Private Ltd
- Port Waratah Coal Services - Australia
- Deloitte Consulting - India
- Posco Energy - South Korea
- Coalindo Energy - Indonesia
- VISA Power Limited - India
- Xindia Steels Limited - India
- Romanian Commodities Exchange
- Straits Asia Resources Limited - Singapore
- Mercator Lines Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indika Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- Sakthi Sugars Limited - India
- Georgia Ports Authority, United States
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