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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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Thursday, 13 August 09
RIO PREPARES COAL IPO AFTER FAILING TO FIND BUYER
Bloomberg reported that, Rio Tinto Group, the world’s third- largest mining company, is preparing an initial public offering for its U.S. ...
Thursday, 13 August 09
NOBLE'S PROFIT DOUBLES ON GLOUCESTER COAL ACQUISITION
Bloomberg reported that, Noble Group Ltd., a Hong Kong-based supplier of raw materials from soybeans to coal, said second- quarter profit more than ...
Thursday, 13 August 09
CHINA COAL-PRICES UNCHANGED, BUT LIKELY TO MOVE HIGHER
Alibaba reported that, Spot coal prices in China's top coal port Qinhuangdao were unchanged from a week earlier, but are still looking bullish in t ...
Thursday, 13 August 09
INDONESIA'S BERAU COAL SEES 2010 OUTPUT UP 16 PCT
Reuters reported that, Indonesia's fifth-largest coal miner, PT Berau Coal, expects 2010 production to be nearly 16 percent higher than this year, ...
Thursday, 13 August 09
JAYPEE GROUP. L&T INK RS 4,000-CRORE (US$ 824,818,084) DEAL
Second order bagged by L&T in the supercritical segment.
Jaiprakash Power Ventures Ltd (JPVL), promoted by the $7-billion Jaypee group, has s ...
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- Baramulti Group, Indonesia
- Borneo Indobara - Indonesia
- Romanian Commodities Exchange
- Toyota Tsusho Corporation, Japan
- Indian Energy Exchange, India
- Indian Oil Corporation Limited
- Parry Sugars Refinery, India
- Sarangani Energy Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Oldendorff Carriers - Singapore
- GMR Energy Limited - India
- Australian Coal Association
- Sindya Power Generating Company Private Ltd
- Meralco Power Generation, Philippines
- Ministry of Transport, Egypt
- SMC Global Power, Philippines
- Siam City Cement - Thailand
- Kumho Petrochemical, South Korea
- Central Java Power - Indonesia
- Tamil Nadu electricity Board
- TeaM Sual Corporation - Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Maheswari Brothers Coal Limited - India
- Economic Council, Georgia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- European Bulk Services B.V. - Netherlands
- Central Electricity Authority - India
- Australian Commodity Traders Exchange
- Indogreen Group - Indonesia
- Bangladesh Power Developement Board
- Timah Investasi Mineral - Indoneisa
- Iligan Light & Power Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- AsiaOL BioFuels Corp., Philippines
- Interocean Group of Companies - India
- Carbofer General Trading SA - India
- Sical Logistics Limited - India
- Lanco Infratech Ltd - India
- Indonesian Coal Mining Association
- GN Power Mariveles Coal Plant, Philippines
- Bhoruka Overseas - Indonesia
- Aditya Birla Group - India
- Neyveli Lignite Corporation Ltd, - India
- Mintek Dendrill Indonesia
- Grasim Industreis Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Gujarat Electricity Regulatory Commission - India
- MS Steel International - UAE
- Jorong Barutama Greston.PT - Indonesia
- Orica Australia Pty. Ltd.
- Karaikal Port Pvt Ltd - India
- Mjunction Services Limited - India
- Mercuria Energy - Indonesia
- Global Business Power Corporation, Philippines
- Therma Luzon, Inc, Philippines
- ASAPP Information Group - India
- Uttam Galva Steels Limited - India
- Marubeni Corporation - India
- London Commodity Brokers - England
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Intertek Mineral Services - Indonesia
- IHS Mccloskey Coal Group - USA
- Madhucon Powers Ltd - India
- Vizag Seaport Private Limited - India
- Wood Mackenzie - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- CNBM International Corporation - China
- Independent Power Producers Association of India
- Global Coal Blending Company Limited - Australia
- Sojitz Corporation - Japan
- Chamber of Mines of South Africa
- Rio Tinto Coal - Australia
- San Jose City I Power Corp, Philippines
- Ceylon Electricity Board - Sri Lanka
- Dalmia Cement Bharat India
- Standard Chartered Bank - UAE
- Sinarmas Energy and Mining - Indonesia
- Orica Mining Services - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Vedanta Resources Plc - India
- Latin American Coal - Colombia
- Petrochimia International Co. Ltd.- Taiwan
- Larsen & Toubro Limited - India
- Goldman Sachs - Singapore
- Bukit Makmur.PT - Indonesia
- New Zealand Coal & Carbon
- The State Trading Corporation of India Ltd
- Sakthi Sugars Limited - India
- Directorate General of MIneral and Coal - Indonesia
- LBH Netherlands Bv - Netherlands
- Anglo American - United Kingdom
- SMG Consultants - Indonesia
- Sree Jayajothi Cements Limited - India
- Wilmar Investment Holdings
- Bukit Asam (Persero) Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- Georgia Ports Authority, United States
- Bukit Baiduri Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- Kobexindo Tractors - Indoneisa
- Trasteel International SA, Italy
- CIMB Investment Bank - Malaysia
- Heidelberg Cement - Germany
- Ind-Barath Power Infra Limited - India
- IEA Clean Coal Centre - UK
- Jindal Steel & Power Ltd - India
- India Bulls Power Limited - India
- Medco Energi Mining Internasional
- Semirara Mining and Power Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Finance - Indonesia
- Power Finance Corporation Ltd., India
- Billiton Holdings Pty Ltd - Australia
- Binh Thuan Hamico - Vietnam
- ICICI Bank Limited - India
- Straits Asia Resources Limited - Singapore
- Krishnapatnam Port Company Ltd. - India
- Agrawal Coal Company - India
- White Energy Company Limited
- Price Waterhouse Coopers - Russia
- Kepco SPC Power Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Deloitte Consulting - India
- International Coal Ventures Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Simpson Spence & Young - Indonesia
- Energy Link Ltd, New Zealand
- Thai Mozambique Logistica
- Bayan Resources Tbk. - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Kaltim Prima Coal - Indonesia
- Africa Commodities Group - South Africa
- Bhatia International Limited - India
- Commonwealth Bank - Australia
- Singapore Mercantile Exchange
- Port Waratah Coal Services - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Thiess Contractors Indonesia
- Global Green Power PLC Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- TNB Fuel Sdn Bhd - Malaysia
- Maharashtra Electricity Regulatory Commission - India
- Coalindo Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- Star Paper Mills Limited - India
- Siam City Cement PLC, Thailand
- Energy Development Corp, Philippines
- Attock Cement Pakistan Limited
- PTC India Limited - India
- Gujarat Sidhee Cement - India
- Mercator Lines Limited - India
- Planning Commission, India
- The Treasury - Australian Government
- Barasentosa Lestari - Indonesia
- Globalindo Alam Lestari - Indonesia
- Ambuja Cements Ltd - India
- Ministry of Mines - Canada
- Kartika Selabumi Mining - Indonesia
- Eastern Coal Council - USA
- Holcim Trading Pte Ltd - Singapore
- PowerSource Philippines DevCo
- Minerals Council of Australia
- South Luzon Thermal Energy Corporation
- Kohat Cement Company Ltd. - Pakistan
- GAC Shipping (India) Pvt Ltd
- VISA Power Limited - India
- Makarim & Taira - Indonesia
- Metalloyd Limited - United Kingdom
- Eastern Energy - Thailand
- Riau Bara Harum - Indonesia
- McConnell Dowell - Australia
- Gujarat Mineral Development Corp Ltd - India
- Parliament of New Zealand
- PetroVietnam Power Coal Import and Supply Company
- The University of Queensland
- PNOC Exploration Corporation - Philippines
- Petron Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Manunggal Multi Energi - Indonesia
- Bulk Trading Sa - Switzerland
- Malabar Cements Ltd - India
- Formosa Plastics Group - Taiwan
- Leighton Contractors Pty Ltd - Australia
- Electricity Generating Authority of Thailand
- Edison Trading Spa - Italy
- Vijayanagar Sugar Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Posco Energy - South Korea
- Coal and Oil Company - UAE
- Pendopo Energi Batubara - Indonesia
- Merrill Lynch Commodities Europe
- Indika Energy - Indonesia
- Jaiprakash Power Ventures ltd
- Xindia Steels Limited - India
- Coastal Gujarat Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Tata Chemicals Ltd - India
- Altura Mining Limited, Indonesia
- Antam Resourcindo - Indonesia
- Miang Besar Coal Terminal - Indonesia
- SN Aboitiz Power Inc, Philippines
- Videocon Industries ltd - India
- Bharathi Cement Corporation - India
- GVK Power & Infra Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Cement Manufacturers Association - India
- Bhushan Steel Limited - India
- Electricity Authority, New Zealand
- Essar Steel Hazira Ltd - India
- Renaissance Capital - South Africa
- Savvy Resources Ltd - HongKong
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