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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, 17 August 09
COAL EXPORTS CONTINUE DESPITE SHORTAGE
Vietnam News reported that, Viet Nam is exporting more coal despite a warning from experts that the country could face a shortage of this fossil fue ...
Monday, 17 August 09
S.KOREA JULY COAL IMPORTS UP TO 8.97 MLN T
* Imports of heating coal in July up 3.7 percent on year
* LNG imports in July fall for seventh straight month
Alibaba reorted that, South Kore ...
Monday, 17 August 09
COAL INDIA PLANS A PRICE HIKE OF 11%
With the state-run CIL mining 84% of the coal produced in the country, an 11% increase will push up inflation by around 0.16%, the company said
L ...
Monday, 17 August 09
BANPU SEES INDONESIAN MINE OUTPUT UP 10 PCT IN 2010
Reuters reported that, Thailand's top coal miner, Banpu, said on Monday it expected coal output from its Indonesian mines to rise 10 percent to abo ...
Monday, 17 August 09
COAL IMPORTS SURGE IN H1
China is one of the world's leading coal producers. But even so, imports of coal have surged in the first half of the year, hitting a record in Jun ...
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- Attock Cement Pakistan Limited
- PNOC Exploration Corporation - Philippines
- Makarim & Taira - Indonesia
- Bukit Baiduri Energy - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Kideco Jaya Agung - Indonesia
- Toyota Tsusho Corporation, Japan
- Australian Commodity Traders Exchange
- Rashtriya Ispat Nigam Limited - India
- Singapore Mercantile Exchange
- Merrill Lynch Commodities Europe
- Offshore Bulk Terminal Pte Ltd, Singapore
- McConnell Dowell - Australia
- Gujarat Electricity Regulatory Commission - India
- Binh Thuan Hamico - Vietnam
- Medco Energi Mining Internasional
- Bhushan Steel Limited - India
- Savvy Resources Ltd - HongKong
- Cigading International Bulk Terminal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- GVK Power & Infra Limited - India
- Electricity Authority, New Zealand
- India Bulls Power Limited - India
- Latin American Coal - Colombia
- Ceylon Electricity Board - Sri Lanka
- Georgia Ports Authority, United States
- Sarangani Energy Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Malabar Cements Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Agrawal Coal Company - India
- Xindia Steels Limited - India
- Energy Link Ltd, New Zealand
- Minerals Council of Australia
- ICICI Bank Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Heidelberg Cement - Germany
- Orica Mining Services - Indonesia
- Energy Development Corp, Philippines
- Indonesian Coal Mining Association
- Semirara Mining Corp, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Aditya Birla Group - India
- Pendopo Energi Batubara - Indonesia
- Kobexindo Tractors - Indoneisa
- Central Electricity Authority - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Parliament of New Zealand
- PTC India Limited - India
- Deloitte Consulting - India
- PowerSource Philippines DevCo
- Manunggal Multi Energi - Indonesia
- Renaissance Capital - South Africa
- LBH Netherlands Bv - Netherlands
- Bhoruka Overseas - Indonesia
- OPG Power Generation Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Iligan Light & Power Inc, Philippines
- Wilmar Investment Holdings
- Krishnapatnam Port Company Ltd. - India
- Vedanta Resources Plc - India
- Parry Sugars Refinery, India
- Interocean Group of Companies - India
- Holcim Trading Pte Ltd - Singapore
- Indian Energy Exchange, India
- Electricity Generating Authority of Thailand
- Chamber of Mines of South Africa
- Straits Asia Resources Limited - Singapore
- International Coal Ventures Pvt Ltd - India
- Indika Energy - Indonesia
- Cement Manufacturers Association - India
- Mintek Dendrill Indonesia
- Sojitz Corporation - Japan
- TeaM Sual Corporation - Philippines
- Orica Australia Pty. Ltd.
- The State Trading Corporation of India Ltd
- Therma Luzon, Inc, Philippines
- The University of Queensland
- Independent Power Producers Association of India
- European Bulk Services B.V. - Netherlands
- Indian Oil Corporation Limited
- Altura Mining Limited, Indonesia
- Mercator Lines Limited - India
- Miang Besar Coal Terminal - Indonesia
- Larsen & Toubro Limited - India
- Bhatia International Limited - India
- Ambuja Cements Ltd - India
- Bulk Trading Sa - Switzerland
- Rio Tinto Coal - Australia
- Gujarat Mineral Development Corp Ltd - India
- Power Finance Corporation Ltd., India
- Mjunction Services Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- SMC Global Power, Philippines
- Barasentosa Lestari - Indonesia
- Indogreen Group - Indonesia
- Ministry of Transport, Egypt
- Riau Bara Harum - Indonesia
- Central Java Power - Indonesia
- Siam City Cement - Thailand
- Economic Council, Georgia
- Bangladesh Power Developement Board
- Madhucon Powers Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jindal Steel & Power Ltd - India
- Timah Investasi Mineral - Indoneisa
- ASAPP Information Group - India
- Wood Mackenzie - Singapore
- Australian Coal Association
- Intertek Mineral Services - Indonesia
- AsiaOL BioFuels Corp., Philippines
- IEA Clean Coal Centre - UK
- Essar Steel Hazira Ltd - India
- Ministry of Finance - Indonesia
- Bukit Makmur.PT - Indonesia
- SMG Consultants - Indonesia
- Videocon Industries ltd - India
- Bharathi Cement Corporation - India
- Chettinad Cement Corporation Ltd - India
- GAC Shipping (India) Pvt Ltd
- Aboitiz Power Corporation - Philippines
- Trasteel International SA, Italy
- Global Coal Blending Company Limited - Australia
- Karbindo Abesyapradhi - Indoneisa
- Eastern Coal Council - USA
- Pipit Mutiara Jaya. PT, Indonesia
- Petron Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Anglo American - United Kingdom
- Dalmia Cement Bharat India
- Oldendorff Carriers - Singapore
- Sindya Power Generating Company Private Ltd
- Mercuria Energy - Indonesia
- Marubeni Corporation - India
- PetroVietnam Power Coal Import and Supply Company
- MS Steel International - UAE
- London Commodity Brokers - England
- Baramulti Group, Indonesia
- Sakthi Sugars Limited - India
- Metalloyd Limited - United Kingdom
- Coal and Oil Company - UAE
- Bayan Resources Tbk. - Indonesia
- CIMB Investment Bank - Malaysia
- Sical Logistics Limited - India
- Romanian Commodities Exchange
- Thiess Contractors Indonesia
- Goldman Sachs - Singapore
- SN Aboitiz Power Inc, Philippines
- Posco Energy - South Korea
- Grasim Industreis Ltd - India
- Antam Resourcindo - Indonesia
- Kepco SPC Power Corporation, Philippines
- Jaiprakash Power Ventures ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- White Energy Company Limited
- Ministry of Mines - Canada
- Kapuas Tunggal Persada - Indonesia
- Global Green Power PLC Corporation, Philippines
- Global Business Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Ind-Barath Power Infra Limited - India
- Africa Commodities Group - South Africa
- Billiton Holdings Pty Ltd - Australia
- San Jose City I Power Corp, Philippines
- Thai Mozambique Logistica
- Indo Tambangraya Megah - Indonesia
- Banpu Public Company Limited - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Edison Trading Spa - Italy
- Maharashtra Electricity Regulatory Commission - India
- Star Paper Mills Limited - India
- Price Waterhouse Coopers - Russia
- South Luzon Thermal Energy Corporation
- CNBM International Corporation - China
- The Treasury - Australian Government
- Tamil Nadu electricity Board
- Carbofer General Trading SA - India
- IHS Mccloskey Coal Group - USA
- Directorate General of MIneral and Coal - Indonesia
- Borneo Indobara - Indonesia
- Lanco Infratech Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- Kaltim Prima Coal - Indonesia
- VISA Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- Eastern Energy - Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Gujarat Sidhee Cement - India
- Vijayanagar Sugar Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Uttam Galva Steels Limited - India
- Commonwealth Bank - Australia
- GN Power Mariveles Coal Plant, Philippines
- Kumho Petrochemical, South Korea
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- New Zealand Coal & Carbon
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Globalindo Alam Lestari - Indonesia
- Karaikal Port Pvt Ltd - India
- GMR Energy Limited - India
- Standard Chartered Bank - UAE
- Siam City Cement PLC, Thailand
- Salva Resources Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Port Waratah Coal Services - Australia
- Kartika Selabumi Mining - Indonesia
- Formosa Plastics Group - Taiwan
- Meralco Power Generation, Philippines
- Planning Commission, India
- Maheswari Brothers Coal Limited - India
- Coastal Gujarat Power Limited - India
- Coalindo Energy - Indonesia
- Tata Chemicals Ltd - India
- Asmin Koalindo Tuhup - Indonesia
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