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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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Saturday, 12 September 09
$1.5B KALIMANTAN COAL RAIL TENDER EXPECTED BY YEAR-END
The Jakarta Globe reported that, In the second announcement on major coal-railway projects in as many days, Central Kalimantan’s top official ...
Friday, 11 September 09
INDONESIA COAL-PRICES AT $66, SUPPLIERS OFFER AT BARGAIN PRICES
Some Indonesian producers were rushing to sell coal at bargain prices to ease excess stocks and catch shipments before the Muslim Eid Al-Fitr festiv ...
Friday, 11 September 09
ALPHA NATURAL EXPECTS HIGHER MET, STEAM COAL PRICES IN 2010
Mining Weekly reported that, There are encouraging signs that metallurgical coal demand in most key global markets is either returning or poised to ...
Friday, 11 September 09
POWER SECTOR'S DEPENDENCE ON COAL TO CONTINUE
The power sector will continue to be largely dependant on coal-based thermal power plants to meet its energy needs for the next 15-20 years, Power S ...
Friday, 11 September 09
L&T EYES AUSSIE COAL MINE
Commodity Online reported that, Larsen and Toubro is in talks to buy a thermal coal mine in Australia for about $300 million. Thermal coal is used f ...
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- The Treasury - Australian Government
- PNOC Exploration Corporation - Philippines
- Parry Sugars Refinery, India
- Petron Corporation, Philippines
- Indonesian Coal Mining Association
- Holcim Trading Pte Ltd - Singapore
- Formosa Plastics Group - Taiwan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- OPG Power Generation Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Economic Council, Georgia
- Leighton Contractors Pty Ltd - Australia
- Edison Trading Spa - Italy
- Gujarat Sidhee Cement - India
- Wood Mackenzie - Singapore
- Kideco Jaya Agung - Indonesia
- Salva Resources Pvt Ltd - India
- PTC India Limited - India
- SMC Global Power, Philippines
- Meenaskhi Energy Private Limited - India
- CNBM International Corporation - China
- SN Aboitiz Power Inc, Philippines
- Chettinad Cement Corporation Ltd - India
- IHS Mccloskey Coal Group - USA
- ASAPP Information Group - India
- Africa Commodities Group - South Africa
- Siam City Cement PLC, Thailand
- London Commodity Brokers - England
- Bharathi Cement Corporation - India
- Ind-Barath Power Infra Limited - India
- Samtan Co., Ltd - South Korea
- TeaM Sual Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- Indogreen Group - Indonesia
- Global Green Power PLC Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Attock Cement Pakistan Limited
- Jorong Barutama Greston.PT - Indonesia
- San Jose City I Power Corp, Philippines
- Maheswari Brothers Coal Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indo Tambangraya Megah - Indonesia
- Carbofer General Trading SA - India
- Intertek Mineral Services - Indonesia
- White Energy Company Limited
- MS Steel International - UAE
- Bulk Trading Sa - Switzerland
- Planning Commission, India
- Kalimantan Lumbung Energi - Indonesia
- Rio Tinto Coal - Australia
- Sakthi Sugars Limited - India
- Krishnapatnam Port Company Ltd. - India
- Australian Commodity Traders Exchange
- Tamil Nadu electricity Board
- Straits Asia Resources Limited - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Global Coal Blending Company Limited - Australia
- Borneo Indobara - Indonesia
- Barasentosa Lestari - Indonesia
- Thiess Contractors Indonesia
- Kartika Selabumi Mining - Indonesia
- Binh Thuan Hamico - Vietnam
- Directorate General of MIneral and Coal - Indonesia
- Latin American Coal - Colombia
- Essar Steel Hazira Ltd - India
- Ministry of Mines - Canada
- Baramulti Group, Indonesia
- PowerSource Philippines DevCo
- Toyota Tsusho Corporation, Japan
- Bukit Baiduri Energy - Indonesia
- Marubeni Corporation - India
- Timah Investasi Mineral - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Neyveli Lignite Corporation Ltd, - India
- Maharashtra Electricity Regulatory Commission - India
- Bangladesh Power Developement Board
- The State Trading Corporation of India Ltd
- Merrill Lynch Commodities Europe
- Savvy Resources Ltd - HongKong
- Xindia Steels Limited - India
- Electricity Authority, New Zealand
- Sindya Power Generating Company Private Ltd
- Miang Besar Coal Terminal - Indonesia
- Aboitiz Power Corporation - Philippines
- Tata Chemicals Ltd - India
- Uttam Galva Steels Limited - India
- Wilmar Investment Holdings
- Aditya Birla Group - India
- South Luzon Thermal Energy Corporation
- India Bulls Power Limited - India
- SMG Consultants - Indonesia
- International Coal Ventures Pvt Ltd - India
- Interocean Group of Companies - India
- PetroVietnam Power Coal Import and Supply Company
- Minerals Council of Australia
- GN Power Mariveles Coal Plant, Philippines
- Makarim & Taira - Indonesia
- IEA Clean Coal Centre - UK
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- Kumho Petrochemical, South Korea
- Ambuja Cements Ltd - India
- Trasteel International SA, Italy
- Petrochimia International Co. Ltd.- Taiwan
- Bukit Makmur.PT - Indonesia
- GMR Energy Limited - India
- Standard Chartered Bank - UAE
- Semirara Mining Corp, Philippines
- Antam Resourcindo - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Parliament of New Zealand
- Energy Development Corp, Philippines
- Malabar Cements Ltd - India
- Star Paper Mills Limited - India
- Grasim Industreis Ltd - India
- Larsen & Toubro Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Dalmia Cement Bharat India
- Ministry of Finance - Indonesia
- Mercator Lines Limited - India
- Sree Jayajothi Cements Limited - India
- Metalloyd Limited - United Kingdom
- Vedanta Resources Plc - India
- Port Waratah Coal Services - Australia
- Posco Energy - South Korea
- Georgia Ports Authority, United States
- Directorate Of Revenue Intelligence - India
- Agrawal Coal Company - India
- Altura Mining Limited, Indonesia
- Goldman Sachs - Singapore
- CIMB Investment Bank - Malaysia
- Madhucon Powers Ltd - India
- Heidelberg Cement - Germany
- Kepco SPC Power Corporation, Philippines
- Independent Power Producers Association of India
- Mintek Dendrill Indonesia
- Iligan Light & Power Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Karbindo Abesyapradhi - Indoneisa
- Coalindo Energy - Indonesia
- Meralco Power Generation, Philippines
- Karaikal Port Pvt Ltd - India
- McConnell Dowell - Australia
- Sical Logistics Limited - India
- Electricity Generating Authority of Thailand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Simpson Spence & Young - Indonesia
- ICICI Bank Limited - India
- The University of Queensland
- Orica Australia Pty. Ltd.
- Bhoruka Overseas - Indonesia
- Sarangani Energy Corporation, Philippines
- New Zealand Coal & Carbon
- Bayan Resources Tbk. - Indonesia
- Videocon Industries ltd - India
- Thai Mozambique Logistica
- Bahari Cakrawala Sebuku - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Romanian Commodities Exchange
- LBH Netherlands Bv - Netherlands
- Central Java Power - Indonesia
- Price Waterhouse Coopers - Russia
- Jindal Steel & Power Ltd - India
- Australian Coal Association
- Indian Energy Exchange, India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Asam (Persero) Tbk - Indonesia
- GVK Power & Infra Limited - India
- Indika Energy - Indonesia
- Anglo American - United Kingdom
- Riau Bara Harum - Indonesia
- Cigading International Bulk Terminal - Indonesia
- VISA Power Limited - India
- Mercuria Energy - Indonesia
- Therma Luzon, Inc, Philippines
- Cement Manufacturers Association - India
- Mjunction Services Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Global Business Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Bhatia International Limited - India
- Coal and Oil Company - UAE
- Singapore Mercantile Exchange
- Rashtriya Ispat Nigam Limited - India
- Pendopo Energi Batubara - Indonesia
- Siam City Cement - Thailand
- Oldendorff Carriers - Singapore
- Kapuas Tunggal Persada - Indonesia
- Vizag Seaport Private Limited - India
- Chamber of Mines of South Africa
- Banpu Public Company Limited - Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Energy Link Ltd, New Zealand
- Renaissance Capital - South Africa
- Kaltim Prima Coal - Indonesia
- Eastern Coal Council - USA
- Sojitz Corporation - Japan
- European Bulk Services B.V. - Netherlands
- Bhushan Steel Limited - India
- Jaiprakash Power Ventures ltd
- Coastal Gujarat Power Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Deloitte Consulting - India
- Central Electricity Authority - India
- Orica Mining Services - Indonesia
- Commonwealth Bank - Australia
- Sinarmas Energy and Mining - Indonesia
- Eastern Energy - Thailand
- Indian Oil Corporation Limited
- Power Finance Corporation Ltd., India
- Billiton Holdings Pty Ltd - Australia
- Medco Energi Mining Internasional
- Ministry of Transport, Egypt
- Semirara Mining and Power Corporation, Philippines
- Lanco Infratech Ltd - India
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