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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, 16 September 09
NAPOCOR GETS 3 OFFERS IN COAL TENDER
ABS-CBN news reported that, The Philippines' state-run National Power Corp. (Napocor) said on Wednesday it received offers from 3 Indonesian firms ...
Wednesday, 16 September 09
S.KOREA KOSEP BUYS 1.06 MLN T COAL-SOURCE
* 6,080 kcal/kg at $63-65, 4,900-5,350 kcal/kg at $56-58
* Initially about 5 mln T offered for tender
Reuters reported that, Korea South ...
Tuesday, 15 September 09
CHINA COAL EXPORT ROSE M-O-M FOR THE STRAIGHT 3 MONTHS
Alibaba reported that, In the January-August period, China coal exports slid by 55.9% to 14.83mln tons month on month. In August, China exported 1.9 ...
Monday, 14 September 09
CIL MAY REDUCE FLOOR PRICE OF E-AUCTION COAL
After receiving a lukewarm response to the forward e-auction started in two of its subsidiaries, Coal India Limited (CIL) is mulling to reduce the f ...
Monday, 14 September 09
INDONESIAN GOVT UPBEAT ABOUT $1.5B, 185-KM COAL RAILWAY PROJECT
In addition to a 30-year concession right, the government will also award a competitive pricing scheme as an incentive to lure investors in a US$1.5 ...
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- Kapuas Tunggal Persada - Indonesia
- Goldman Sachs - Singapore
- Mjunction Services Limited - India
- Energy Development Corp, Philippines
- Wood Mackenzie - Singapore
- CIMB Investment Bank - Malaysia
- GAC Shipping (India) Pvt Ltd
- Simpson Spence & Young - Indonesia
- Oldendorff Carriers - Singapore
- Krishnapatnam Port Company Ltd. - India
- Bhatia International Limited - India
- Jindal Steel & Power Ltd - India
- Agrawal Coal Company - India
- IEA Clean Coal Centre - UK
- Grasim Industreis Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Gujarat Sidhee Cement - India
- Meralco Power Generation, Philippines
- Indo Tambangraya Megah - Indonesia
- Medco Energi Mining Internasional
- Ministry of Finance - Indonesia
- Sree Jayajothi Cements Limited - India
- Manunggal Multi Energi - Indonesia
- Parry Sugars Refinery, India
- Kobexindo Tractors - Indoneisa
- Sinarmas Energy and Mining - Indonesia
- Renaissance Capital - South Africa
- TNB Fuel Sdn Bhd - Malaysia
- Wilmar Investment Holdings
- Kalimantan Lumbung Energi - Indonesia
- India Bulls Power Limited - India
- Ministry of Transport, Egypt
- Maheswari Brothers Coal Limited - India
- Coalindo Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Rio Tinto Coal - Australia
- Miang Besar Coal Terminal - Indonesia
- Bangladesh Power Developement Board
- SMG Consultants - Indonesia
- Vizag Seaport Private Limited - India
- European Bulk Services B.V. - Netherlands
- Mercuria Energy - Indonesia
- McConnell Dowell - Australia
- Power Finance Corporation Ltd., India
- Gujarat Mineral Development Corp Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Posco Energy - South Korea
- Energy Link Ltd, New Zealand
- Kepco SPC Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Heidelberg Cement - Germany
- Mintek Dendrill Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Marubeni Corporation - India
- Antam Resourcindo - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Australian Coal Association
- Global Business Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Rashtriya Ispat Nigam Limited - India
- Malabar Cements Ltd - India
- Savvy Resources Ltd - HongKong
- Indika Energy - Indonesia
- VISA Power Limited - India
- San Jose City I Power Corp, Philippines
- Kumho Petrochemical, South Korea
- Merrill Lynch Commodities Europe
- Coastal Gujarat Power Limited - India
- Siam City Cement PLC, Thailand
- CNBM International Corporation - China
- Binh Thuan Hamico - Vietnam
- Orica Mining Services - Indonesia
- Anglo American - United Kingdom
- South Luzon Thermal Energy Corporation
- Asmin Koalindo Tuhup - Indonesia
- Trasteel International SA, Italy
- Deloitte Consulting - India
- Kartika Selabumi Mining - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Economic Council, Georgia
- Borneo Indobara - Indonesia
- Independent Power Producers Association of India
- Timah Investasi Mineral - Indoneisa
- Petrochimia International Co. Ltd.- Taiwan
- Meenaskhi Energy Private Limited - India
- Straits Asia Resources Limited - Singapore
- Billiton Holdings Pty Ltd - Australia
- Eastern Energy - Thailand
- Latin American Coal - Colombia
- Kohat Cement Company Ltd. - Pakistan
- Dalmia Cement Bharat India
- Commonwealth Bank - Australia
- PowerSource Philippines DevCo
- Planning Commission, India
- Australian Commodity Traders Exchange
- Bukit Baiduri Energy - Indonesia
- Ministry of Mines - Canada
- Price Waterhouse Coopers - Russia
- MS Steel International - UAE
- Videocon Industries ltd - India
- Banpu Public Company Limited - Thailand
- Riau Bara Harum - Indonesia
- Indonesian Coal Mining Association
- Leighton Contractors Pty Ltd - Australia
- Minerals Council of Australia
- Cement Manufacturers Association - India
- Interocean Group of Companies - India
- Bhoruka Overseas - Indonesia
- Port Waratah Coal Services - Australia
- Directorate General of MIneral and Coal - Indonesia
- New Zealand Coal & Carbon
- Metalloyd Limited - United Kingdom
- Indian Oil Corporation Limited
- Makarim & Taira - Indonesia
- Sindya Power Generating Company Private Ltd
- Bahari Cakrawala Sebuku - Indonesia
- International Coal Ventures Pvt Ltd - India
- ICICI Bank Limited - India
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Central Electricity Authority - India
- Star Paper Mills Limited - India
- Intertek Mineral Services - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Thai Mozambique Logistica
- Cigading International Bulk Terminal - Indonesia
- Larsen & Toubro Limited - India
- Essar Steel Hazira Ltd - India
- Sakthi Sugars Limited - India
- Formosa Plastics Group - Taiwan
- Ind-Barath Power Infra Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Xindia Steels Limited - India
- Baramulti Group, Indonesia
- Chamber of Mines of South Africa
- Bayan Resources Tbk. - Indonesia
- Iligan Light & Power Inc, Philippines
- Semirara Mining Corp, Philippines
- Bhushan Steel Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Chettinad Cement Corporation Ltd - India
- Electricity Generating Authority of Thailand
- Bulk Trading Sa - Switzerland
- Globalindo Alam Lestari - Indonesia
- Kaltim Prima Coal - Indonesia
- Ambuja Cements Ltd - India
- Tata Chemicals Ltd - India
- Orica Australia Pty. Ltd.
- Aditya Birla Group - India
- AsiaOL BioFuels Corp., Philippines
- Indogreen Group - Indonesia
- TeaM Sual Corporation - Philippines
- Directorate Of Revenue Intelligence - India
- Uttam Galva Steels Limited - India
- Vedanta Resources Plc - India
- PNOC Exploration Corporation - Philippines
- Indian Energy Exchange, India
- Romanian Commodities Exchange
- Kideco Jaya Agung - Indonesia
- Eastern Coal Council - USA
- Tamil Nadu electricity Board
- Semirara Mining and Power Corporation, Philippines
- Altura Mining Limited, Indonesia
- Gujarat Electricity Regulatory Commission - India
- SMC Global Power, Philippines
- The State Trading Corporation of India Ltd
- Africa Commodities Group - South Africa
- Barasentosa Lestari - Indonesia
- Aboitiz Power Corporation - Philippines
- PTC India Limited - India
- Holcim Trading Pte Ltd - Singapore
- Standard Chartered Bank - UAE
- Offshore Bulk Terminal Pte Ltd, Singapore
- Central Java Power - Indonesia
- Parliament of New Zealand
- Bharathi Cement Corporation - India
- Salva Resources Pvt Ltd - India
- London Commodity Brokers - England
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GMR Energy Limited - India
- Sojitz Corporation - Japan
- Georgia Ports Authority, United States
- Electricity Authority, New Zealand
- Mercator Lines Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Lanco Infratech Ltd - India
- Edison Trading Spa - Italy
- Attock Cement Pakistan Limited
- Karaikal Port Pvt Ltd - India
- Carbofer General Trading SA - India
- Therma Luzon, Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- White Energy Company Limited
- SN Aboitiz Power Inc, Philippines
- GVK Power & Infra Limited - India
- Siam City Cement - Thailand
- OPG Power Generation Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Petron Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Global Coal Blending Company Limited - Australia
- Toyota Tsusho Corporation, Japan
- Samtan Co., Ltd - South Korea
- Sical Logistics Limited - India
- The Treasury - Australian Government
- Singapore Mercantile Exchange
- PetroVietnam Power Coal Import and Supply Company
- The University of Queensland
- Global Green Power PLC Corporation, Philippines
- Coal and Oil Company - UAE
- Thiess Contractors Indonesia
- ASAPP Information Group - India
- Sarangani Energy Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
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