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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, 11 August 09
ZAMBIAN COAL BUYERS CONTINUE IMPORTING COAL FROM ZIMBABWE
Lusaka Times reported that, Coal mining companies have bemoaned the lack of market for their produce as prospective buyers continue importing the co ...
Monday, 10 August 09
NOMINAL HIKE IN COAL PRICES SOON - MEDIA
The hindu business reported that, a marginal hike in coal prices is in the offing. "I will be soon approaching the Prime Minister on the matter ...
Monday, 10 August 09
MANGALAM CEMENT PLACES ORDER FOR CAPTIVE POWER PLANT
Steel Guru reported that, Mangalam Cement Ltd has announced that the company on August 6th 2009 finalized order for Captive Thermal Power Plant of 1 ...
Monday, 10 August 09
VIET NAM COAL EXPORTS HIT 13.5 MILLION TONNES
VietNamNet Bridge reported that, Viet Nam exported more than 13.5 million tonnes of coal in the first seven months of this year, equal to the same p ...
Monday, 10 August 09
S.KOREA KOSPO ISSUES SPOT, TERM COAL TENDERS
Korea Southern Power Co Ltd (KOSPO) is seeking 1.5 million tonnes of steam coal per year for delivery from October 2009 through September 2012 via a ...
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- Semirara Mining Corp, Philippines
- Price Waterhouse Coopers - Russia
- Attock Cement Pakistan Limited
- Vijayanagar Sugar Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- VISA Power Limited - India
- Binh Thuan Hamico - Vietnam
- Central Java Power - Indonesia
- Tata Chemicals Ltd - India
- Standard Chartered Bank - UAE
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Jorong Barutama Greston.PT - Indonesia
- Singapore Mercantile Exchange
- Power Finance Corporation Ltd., India
- India Bulls Power Limited - India
- Coastal Gujarat Power Limited - India
- Bangladesh Power Developement Board
- Planning Commission, India
- Borneo Indobara - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- OPG Power Generation Pvt Ltd - India
- Indian Energy Exchange, India
- Bahari Cakrawala Sebuku - Indonesia
- Karaikal Port Pvt Ltd - India
- Star Paper Mills Limited - India
- Riau Bara Harum - Indonesia
- Savvy Resources Ltd - HongKong
- Edison Trading Spa - Italy
- Leighton Contractors Pty Ltd - Australia
- Siam City Cement PLC, Thailand
- Bukit Makmur.PT - Indonesia
- Medco Energi Mining Internasional
- Global Green Power PLC Corporation, Philippines
- Thiess Contractors Indonesia
- Kideco Jaya Agung - Indonesia
- Global Business Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Eastern Energy - Thailand
- Trasteel International SA, Italy
- Marubeni Corporation - India
- PNOC Exploration Corporation - Philippines
- Romanian Commodities Exchange
- Gujarat Mineral Development Corp Ltd - India
- Metalloyd Limited - United Kingdom
- GAC Shipping (India) Pvt Ltd
- GMR Energy Limited - India
- Billiton Holdings Pty Ltd - Australia
- Ministry of Finance - Indonesia
- San Jose City I Power Corp, Philippines
- Makarim & Taira - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ceylon Electricity Board - Sri Lanka
- Central Electricity Authority - India
- The State Trading Corporation of India Ltd
- Eastern Coal Council - USA
- Ministry of Mines - Canada
- MS Steel International - UAE
- New Zealand Coal & Carbon
- Pendopo Energi Batubara - Indonesia
- Samtan Co., Ltd - South Korea
- Krishnapatnam Port Company Ltd. - India
- Bhoruka Overseas - Indonesia
- Globalindo Alam Lestari - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Formosa Plastics Group - Taiwan
- Indogreen Group - Indonesia
- Deloitte Consulting - India
- Vedanta Resources Plc - India
- Dalmia Cement Bharat India
- CIMB Investment Bank - Malaysia
- Bhushan Steel Limited - India
- Larsen & Toubro Limited - India
- Straits Asia Resources Limited - Singapore
- Sarangani Energy Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Parliament of New Zealand
- Mercuria Energy - Indonesia
- Orica Australia Pty. Ltd.
- Minerals Council of Australia
- Kobexindo Tractors - Indoneisa
- South Luzon Thermal Energy Corporation
- Bukit Baiduri Energy - Indonesia
- Sojitz Corporation - Japan
- International Coal Ventures Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Videocon Industries ltd - India
- Alfred C Toepfer International GmbH - Germany
- Manunggal Multi Energi - Indonesia
- Jindal Steel & Power Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Latin American Coal - Colombia
- SN Aboitiz Power Inc, Philippines
- Coal and Oil Company - UAE
- Sinarmas Energy and Mining - Indonesia
- Interocean Group of Companies - India
- Grasim Industreis Ltd - India
- Wood Mackenzie - Singapore
- PTC India Limited - India
- Bharathi Cement Corporation - India
- Bukit Asam (Persero) Tbk - Indonesia
- Bayan Resources Tbk. - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Parry Sugars Refinery, India
- Sree Jayajothi Cements Limited - India
- Indo Tambangraya Megah - Indonesia
- Intertek Mineral Services - Indonesia
- Iligan Light & Power Inc, Philippines
- Indian Oil Corporation Limited
- Energy Development Corp, Philippines
- Cigading International Bulk Terminal - Indonesia
- Renaissance Capital - South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Maheswari Brothers Coal Limited - India
- Port Waratah Coal Services - Australia
- Electricity Authority, New Zealand
- ASAPP Information Group - India
- Karbindo Abesyapradhi - Indoneisa
- Ind-Barath Power Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Directorate Of Revenue Intelligence - India
- Siam City Cement - Thailand
- Independent Power Producers Association of India
- Meenaskhi Energy Private Limited - India
- McConnell Dowell - Australia
- Economic Council, Georgia
- Merrill Lynch Commodities Europe
- Georgia Ports Authority, United States
- IEA Clean Coal Centre - UK
- Australian Coal Association
- Bulk Trading Sa - Switzerland
- Kalimantan Lumbung Energi - Indonesia
- Coalindo Energy - Indonesia
- Thai Mozambique Logistica
- LBH Netherlands Bv - Netherlands
- Petron Corporation, Philippines
- Energy Link Ltd, New Zealand
- Rashtriya Ispat Nigam Limited - India
- Therma Luzon, Inc, Philippines
- Kumho Petrochemical, South Korea
- Ministry of Transport, Egypt
- Electricity Generating Authority of Thailand
- Goldman Sachs - Singapore
- The University of Queensland
- Africa Commodities Group - South Africa
- Sakthi Sugars Limited - India
- European Bulk Services B.V. - Netherlands
- Indika Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mintek Dendrill Indonesia
- Barasentosa Lestari - Indonesia
- Oldendorff Carriers - Singapore
- Gujarat Electricity Regulatory Commission - India
- GVK Power & Infra Limited - India
- Malabar Cements Ltd - India
- London Commodity Brokers - England
- Posco Energy - South Korea
- Kohat Cement Company Ltd. - Pakistan
- Sical Logistics Limited - India
- Lanco Infratech Ltd - India
- Mjunction Services Limited - India
- Chamber of Mines of South Africa
- Meralco Power Generation, Philippines
- Orica Mining Services - Indonesia
- Bhatia International Limited - India
- TeaM Sual Corporation - Philippines
- Essar Steel Hazira Ltd - India
- Agrawal Coal Company - India
- Mercator Lines Limited - India
- Madhucon Powers Ltd - India
- Wilmar Investment Holdings
- Ambuja Cements Ltd - India
- Uttam Galva Steels Limited - India
- Jaiprakash Power Ventures ltd
- Gujarat Sidhee Cement - India
- Toyota Tsusho Corporation, Japan
- Indonesian Coal Mining Association
- AsiaOL BioFuels Corp., Philippines
- CNBM International Corporation - China
- Miang Besar Coal Terminal - Indonesia
- Commonwealth Bank - Australia
- Anglo American - United Kingdom
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Xindia Steels Limited - India
- Antam Resourcindo - Indonesia
- Simpson Spence & Young - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Australian Commodity Traders Exchange
- Altura Mining Limited, Indonesia
- Global Coal Blending Company Limited - Australia
- Kaltim Prima Coal - Indonesia
- Baramulti Group, Indonesia
- Aditya Birla Group - India
- White Energy Company Limited
- Neyveli Lignite Corporation Ltd, - India
- Holcim Trading Pte Ltd - Singapore
- Tamil Nadu electricity Board
- The Treasury - Australian Government
- GN Power Mariveles Coal Plant, Philippines
- Vizag Seaport Private Limited - India
- Salva Resources Pvt Ltd - India
- Heidelberg Cement - Germany
- Carbofer General Trading SA - India
- PowerSource Philippines DevCo
- Cement Manufacturers Association - India
- ICICI Bank Limited - India
- Kepco SPC Power Corporation, Philippines
- SMG Consultants - Indonesia
- Rio Tinto Coal - Australia
- Aboitiz Power Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- Maharashtra Electricity Regulatory Commission - India
- Banpu Public Company Limited - Thailand
- Sindya Power Generating Company Private Ltd
- SMC Global Power, Philippines
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