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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, 08 September 09
INDONESIA OFFERS AN OPPORTUNITY TO INDIANS
Meri News reported that, Indonesia is all set to launch the country's second 10,000 MW accelerated power expansion programme. The new power develop ...
Tuesday, 08 September 09
BUKIT ASAM AIMS 14 MLN TONS COAL PRODUCTION
VIVA News reported that, The rise in coal production is mainly triggered by the step-up in domestic demand.
Coal mining company PT Tambang Batuba ...
Tuesday, 08 September 09
MERCHANT BANKERS ADVISE CIL ON INDONESIAN MINE BUYS
Business Standard reported that, State-owned Coal India Ltd (CIL) is being advised by four to five merchant bankers on acquisition of coal assets in ...
Tuesday, 08 September 09
THE 3RD ASIA PACIFIC COAL TRADING & INVESTMENT OUTLOOK 2009 - PRESS RELEASE
The 3rd Asia Pacific Coal Trading & Investment Outlook 2009
Analysis of Asia Coal Market amid Global Financial Crisis
COALspot.com(Chin ...
Tuesday, 08 September 09
SOUTH AFRICAN COAL EXPORTS MAY RISE ON SALES TO INDIA
Bloomberg reported that, South African coal exports may rise to 100 million metric tons a year by 2020 and India may become the biggest destination ...
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- Bayan Resources Tbk. - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Australian Coal Association
- Sree Jayajothi Cements Limited - India
- Coalindo Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- AsiaOL BioFuels Corp., Philippines
- Kartika Selabumi Mining - Indonesia
- Indogreen Group - Indonesia
- Australian Commodity Traders Exchange
- VISA Power Limited - India
- Mjunction Services Limited - India
- Interocean Group of Companies - India
- Energy Development Corp, Philippines
- Africa Commodities Group - South Africa
- Wilmar Investment Holdings
- Salva Resources Pvt Ltd - India
- Grasim Industreis Ltd - India
- Binh Thuan Hamico - Vietnam
- Krishnapatnam Port Company Ltd. - India
- Savvy Resources Ltd - HongKong
- The Treasury - Australian Government
- Riau Bara Harum - Indonesia
- Tamil Nadu electricity Board
- SMG Consultants - Indonesia
- London Commodity Brokers - England
- Jorong Barutama Greston.PT - Indonesia
- Bukit Baiduri Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- McConnell Dowell - Australia
- Port Waratah Coal Services - Australia
- Aditya Birla Group - India
- Merrill Lynch Commodities Europe
- Thiess Contractors Indonesia
- Madhucon Powers Ltd - India
- Makarim & Taira - Indonesia
- Goldman Sachs - Singapore
- Barasentosa Lestari - Indonesia
- Aboitiz Power Corporation - Philippines
- Medco Energi Mining Internasional
- Toyota Tsusho Corporation, Japan
- Standard Chartered Bank - UAE
- Ind-Barath Power Infra Limited - India
- Planning Commission, India
- Tata Chemicals Ltd - India
- Indonesian Coal Mining Association
- Asmin Koalindo Tuhup - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Bhatia International Limited - India
- Larsen & Toubro Limited - India
- Latin American Coal - Colombia
- IEA Clean Coal Centre - UK
- Singapore Mercantile Exchange
- Sinarmas Energy and Mining - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Oldendorff Carriers - Singapore
- Star Paper Mills Limited - India
- LBH Netherlands Bv - Netherlands
- Directorate General of MIneral and Coal - Indonesia
- Jaiprakash Power Ventures ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- The University of Queensland
- Commonwealth Bank - Australia
- OPG Power Generation Pvt Ltd - India
- PowerSource Philippines DevCo
- Kepco SPC Power Corporation, Philippines
- Siam City Cement PLC, Thailand
- Petron Corporation, Philippines
- SMC Global Power, Philippines
- Ambuja Cements Ltd - India
- Posco Energy - South Korea
- Coastal Gujarat Power Limited - India
- Therma Luzon, Inc, Philippines
- CIMB Investment Bank - Malaysia
- Heidelberg Cement - Germany
- The State Trading Corporation of India Ltd
- Attock Cement Pakistan Limited
- Orica Mining Services - Indonesia
- Coal and Oil Company - UAE
- Kaltim Prima Coal - Indonesia
- Meralco Power Generation, Philippines
- Sakthi Sugars Limited - India
- Indian Energy Exchange, India
- New Zealand Coal & Carbon
- Mercuria Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Sarangani Energy Corporation, Philippines
- Indika Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Trasteel International SA, Italy
- Formosa Plastics Group - Taiwan
- Central Java Power - Indonesia
- Independent Power Producers Association of India
- Electricity Authority, New Zealand
- Bhoruka Overseas - Indonesia
- Borneo Indobara - Indonesia
- Globalindo Alam Lestari - Indonesia
- Gujarat Sidhee Cement - India
- Deloitte Consulting - India
- Dalmia Cement Bharat India
- Ministry of Finance - Indonesia
- Rashtriya Ispat Nigam Limited - India
- ICICI Bank Limited - India
- Anglo American - United Kingdom
- Parry Sugars Refinery, India
- Eastern Coal Council - USA
- Sical Logistics Limited - India
- PetroVietnam Power Coal Import and Supply Company
- European Bulk Services B.V. - Netherlands
- TeaM Sual Corporation - Philippines
- Iligan Light & Power Inc, Philippines
- Essar Steel Hazira Ltd - India
- Samtan Co., Ltd - South Korea
- Gujarat Electricity Regulatory Commission - India
- Holcim Trading Pte Ltd - Singapore
- Indo Tambangraya Megah - Indonesia
- Global Green Power PLC Corporation, Philippines
- White Energy Company Limited
- Parliament of New Zealand
- SN Aboitiz Power Inc, Philippines
- Mintek Dendrill Indonesia
- Manunggal Multi Energi - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Cement Manufacturers Association - India
- Bhushan Steel Limited - India
- Bharathi Cement Corporation - India
- Global Business Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- International Coal Ventures Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Semirara Mining Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- Global Coal Blending Company Limited - Australia
- Mercator Lines Limited - India
- Straits Asia Resources Limited - Singapore
- Orica Australia Pty. Ltd.
- Sindya Power Generating Company Private Ltd
- Antam Resourcindo - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Intertek Mineral Services - Indonesia
- PNOC Exploration Corporation - Philippines
- Altura Mining Limited, Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Transport, Egypt
- Malabar Cements Ltd - India
- Karaikal Port Pvt Ltd - India
- Rio Tinto Coal - Australia
- India Bulls Power Limited - India
- ASAPP Information Group - India
- Eastern Energy - Thailand
- Ceylon Electricity Board - Sri Lanka
- Romanian Commodities Exchange
- Minerals Council of Australia
- Chamber of Mines of South Africa
- Billiton Holdings Pty Ltd - Australia
- Economic Council, Georgia
- Indian Oil Corporation Limited
- Vedanta Resources Plc - India
- Maharashtra Electricity Regulatory Commission - India
- Wood Mackenzie - Singapore
- MS Steel International - UAE
- GMR Energy Limited - India
- Central Electricity Authority - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Vizag Seaport Private Limited - India
- GVK Power & Infra Limited - India
- Alfred C Toepfer International GmbH - Germany
- IHS Mccloskey Coal Group - USA
- Offshore Bulk Terminal Pte Ltd, Singapore
- Chettinad Cement Corporation Ltd - India
- Jindal Steel & Power Ltd - India
- Directorate Of Revenue Intelligence - India
- TNB Fuel Sdn Bhd - Malaysia
- Baramulti Group, Indonesia
- Thai Mozambique Logistica
- Siam City Cement - Thailand
- Carbofer General Trading SA - India
- Videocon Industries ltd - India
- GN Power Mariveles Coal Plant, Philippines
- CNBM International Corporation - China
- Bulk Trading Sa - Switzerland
- Metalloyd Limited - United Kingdom
- San Jose City I Power Corp, Philippines
- South Luzon Thermal Energy Corporation
- Timah Investasi Mineral - Indoneisa
- Price Waterhouse Coopers - Russia
- Uttam Galva Steels Limited - India
- Electricity Generating Authority of Thailand
- Agrawal Coal Company - India
- Simpson Spence & Young - Indonesia
- PTC India Limited - India
- Sojitz Corporation - Japan
- Kideco Jaya Agung - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Georgia Ports Authority, United States
- Edison Trading Spa - Italy
- Semirara Mining and Power Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Energy Link Ltd, New Zealand
- Gujarat Mineral Development Corp Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Ministry of Mines - Canada
- Lanco Infratech Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Marubeni Corporation - India
- Bangladesh Power Developement Board
- Xindia Steels Limited - India
- Banpu Public Company Limited - Thailand
- Bukit Makmur.PT - Indonesia
- Power Finance Corporation Ltd., India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Petrochimia International Co. Ltd.- Taiwan
- Renaissance Capital - South Africa
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