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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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Monday, 14 September 09
BOOM FORECAST FOR COAL OUTPUT
SMH.com reported that, A COAL investment boom is driving Australian production to new peaks even as our biggest export markets shift towards cleaner ...
Sunday, 13 September 09
COAL INDIA MAY ACQUIRE ASSETS OF RIO TINTO
Coal India’s plan to acquire overseas mining assets is gathering steam. After a breakthrough in Mozambique, the coal behemoth has received&nbs ...
Saturday, 12 September 09
THE INDIA / FAR EAST SEEMS WILL CONTINUE TO BE SOFT UNTIL THE IRON ORE MOVEMENTS PICKS UP - CAPT. REDDY
COALspot.com (Singapore): The dry bulk market continued to be stable at almost as same levels as last week and the BDI was at 2,468 points.
...
Saturday, 12 September 09
GOVT REQUESTS MORE TIME TO ACQUIRE 21% SHARES IN NNT
The Jakarta Post reported that, the government plans to request a postponement for the acquisition of 21 percent shares in PT Newmont Nusa Tenggara ...
Saturday, 12 September 09
INDONESIAN CO KEEN ON TRADING COAL FOR EQUITY IN POWER PROJECTS
Though most large power project promoters have their own mines in Indonesia, MEC is confident of convincing Indian companies as its price is quite a ...
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- Savvy Resources Ltd - HongKong
- Deloitte Consulting - India
- SN Aboitiz Power Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- Marubeni Corporation - India
- Karbindo Abesyapradhi - Indoneisa
- International Coal Ventures Pvt Ltd - India
- PowerSource Philippines DevCo
- OPG Power Generation Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Maheswari Brothers Coal Limited - India
- Ministry of Finance - Indonesia
- Coal and Oil Company - UAE
- India Bulls Power Limited - India
- Bhushan Steel Limited - India
- Energy Link Ltd, New Zealand
- Coastal Gujarat Power Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Latin American Coal - Colombia
- Petrochimia International Co. Ltd.- Taiwan
- Pendopo Energi Batubara - Indonesia
- Formosa Plastics Group - Taiwan
- Commonwealth Bank - Australia
- Dalmia Cement Bharat India
- Tata Chemicals Ltd - India
- Georgia Ports Authority, United States
- Energy Development Corp, Philippines
- Mercator Lines Limited - India
- Aditya Birla Group - India
- Minerals Council of Australia
- Romanian Commodities Exchange
- Intertek Mineral Services - Indonesia
- Salva Resources Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indian Energy Exchange, India
- Edison Trading Spa - Italy
- Mercuria Energy - Indonesia
- Karaikal Port Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Xindia Steels Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Eastern Coal Council - USA
- Africa Commodities Group - South Africa
- Krishnapatnam Port Company Ltd. - India
- Aboitiz Power Corporation - Philippines
- San Jose City I Power Corp, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- LBH Netherlands Bv - Netherlands
- GMR Energy Limited - India
- Economic Council, Georgia
- Bukit Makmur.PT - Indonesia
- Vizag Seaport Private Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Timah Investasi Mineral - Indoneisa
- Ind-Barath Power Infra Limited - India
- Bhoruka Overseas - Indonesia
- Mintek Dendrill Indonesia
- AsiaOL BioFuels Corp., Philippines
- Makarim & Taira - Indonesia
- Indo Tambangraya Megah - Indonesia
- Baramulti Group, Indonesia
- Anglo American - United Kingdom
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SMC Global Power, Philippines
- Videocon Industries ltd - India
- Vedanta Resources Plc - India
- Heidelberg Cement - Germany
- Cement Manufacturers Association - India
- Ministry of Transport, Egypt
- Malabar Cements Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Chettinad Cement Corporation Ltd - India
- Chamber of Mines of South Africa
- Ceylon Electricity Board - Sri Lanka
- Kumho Petrochemical, South Korea
- Indonesian Coal Mining Association
- The State Trading Corporation of India Ltd
- Independent Power Producers Association of India
- Essar Steel Hazira Ltd - India
- Therma Luzon, Inc, Philippines
- Siam City Cement PLC, Thailand
- Eastern Energy - Thailand
- Borneo Indobara - Indonesia
- Sindya Power Generating Company Private Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Standard Chartered Bank - UAE
- Neyveli Lignite Corporation Ltd, - India
- London Commodity Brokers - England
- Altura Mining Limited, Indonesia
- GVK Power & Infra Limited - India
- Wood Mackenzie - Singapore
- Meralco Power Generation, Philippines
- Straits Asia Resources Limited - Singapore
- Tamil Nadu electricity Board
- Bangladesh Power Developement Board
- Sarangani Energy Corporation, Philippines
- Central Java Power - Indonesia
- Riau Bara Harum - Indonesia
- Madhucon Powers Ltd - India
- Toyota Tsusho Corporation, Japan
- Leighton Contractors Pty Ltd - Australia
- McConnell Dowell - Australia
- IHS Mccloskey Coal Group - USA
- Metalloyd Limited - United Kingdom
- Kobexindo Tractors - Indoneisa
- GAC Shipping (India) Pvt Ltd
- Billiton Holdings Pty Ltd - Australia
- Electricity Generating Authority of Thailand
- Sojitz Corporation - Japan
- Semirara Mining Corp, Philippines
- Medco Energi Mining Internasional
- European Bulk Services B.V. - Netherlands
- Renaissance Capital - South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- Carbofer General Trading SA - India
- Star Paper Mills Limited - India
- Global Green Power PLC Corporation, Philippines
- PTC India Limited - India
- Globalindo Alam Lestari - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Electricity Authority, New Zealand
- Merrill Lynch Commodities Europe
- CNBM International Corporation - China
- ASAPP Information Group - India
- Indogreen Group - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PNOC Exploration Corporation - Philippines
- Lanco Infratech Ltd - India
- Rio Tinto Coal - Australia
- Larsen & Toubro Limited - India
- Barasentosa Lestari - Indonesia
- New Zealand Coal & Carbon
- The University of Queensland
- Alfred C Toepfer International GmbH - Germany
- TeaM Sual Corporation - Philippines
- VISA Power Limited - India
- SMG Consultants - Indonesia
- Sree Jayajothi Cements Limited - India
- Interocean Group of Companies - India
- Thai Mozambique Logistica
- Directorate General of MIneral and Coal - Indonesia
- MS Steel International - UAE
- Sical Logistics Limited - India
- Sakthi Sugars Limited - India
- Grasim Industreis Ltd - India
- Jaiprakash Power Ventures ltd
- Posco Energy - South Korea
- Agrawal Coal Company - India
- Kohat Cement Company Ltd. - Pakistan
- White Energy Company Limited
- TNB Fuel Sdn Bhd - Malaysia
- Singapore Mercantile Exchange
- Sinarmas Energy and Mining - Indonesia
- Parry Sugars Refinery, India
- Kepco SPC Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Mines - Canada
- Cigading International Bulk Terminal - Indonesia
- South Luzon Thermal Energy Corporation
- Goldman Sachs - Singapore
- Petron Corporation, Philippines
- Uttam Galva Steels Limited - India
- Gujarat Sidhee Cement - India
- CIMB Investment Bank - Malaysia
- Orica Australia Pty. Ltd.
- Bhatia International Limited - India
- Global Coal Blending Company Limited - Australia
- Oldendorff Carriers - Singapore
- ICICI Bank Limited - India
- Siam City Cement - Thailand
- Coalindo Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Ambuja Cements Ltd - India
- Iligan Light & Power Inc, Philippines
- Parliament of New Zealand
- Global Business Power Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Samtan Co., Ltd - South Korea
- Price Waterhouse Coopers - Russia
- Australian Coal Association
- Australian Commodity Traders Exchange
- Bharathi Cement Corporation - India
- Orica Mining Services - Indonesia
- Thiess Contractors Indonesia
- Central Electricity Authority - India
- IEA Clean Coal Centre - UK
- Jindal Steel & Power Ltd - India
- Mjunction Services Limited - India
- Bulk Trading Sa - Switzerland
- Kaltim Prima Coal - Indonesia
- Port Waratah Coal Services - Australia
- Attock Cement Pakistan Limited
- Planning Commission, India
- Semirara Mining and Power Corporation, Philippines
- Indika Energy - Indonesia
- Simpson Spence & Young - Indonesia
- Trasteel International SA, Italy
- Holcim Trading Pte Ltd - Singapore
- The Treasury - Australian Government
- Binh Thuan Hamico - Vietnam
- Antam Resourcindo - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Manunggal Multi Energi - Indonesia
- Power Finance Corporation Ltd., India
- Gujarat Electricity Regulatory Commission - India
- Indian Oil Corporation Limited
- Kapuas Tunggal Persada - Indonesia
- Wilmar Investment Holdings
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