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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, 28 July 09
BUKIT ASAM ENJOYS STRONG FIRST HALF
The Jakarta Post reported that, state coal miner PT Tambang Batubara Bukit Asam (PTBA) enjoyed a strong first half performance with six-month net pr ...
Tuesday, 28 July 09
NEWCASTLE LOADED 1.943 MILLION TONS OF COAL IN THE WEEK ENDED 27TH JULY 2009
COALspot.com (Singapore) : The volume exported from Australia’s Newcastle port in the week ended - 07:00 hours 27 July 2009 ...
Monday, 27 July 09
INDIA PAYING HIGHEST PRICE FOR S.AFRICA COAL - PRODUCERS
* Spread between South African and Pacific origin coal very wide
* Lack of European buying makes India indicator of value
Reuters reported that, ...
Monday, 27 July 09
TAIWAN'S FORMOSA EYES S.AFRICAN COAL FOR Q4: TRADE
Reuters reported that, Taiwan's Formosa Plastics Group is looking to buy two South African thermal coal cargoes for delivery in the fourth-quarter, ...
Monday, 27 July 09
ADANI POWER'S $625 MILLION IPO TO GENERATE HOT DEMAND
WSJ reported that, Adani Power, the electricity generating unit of India's Adani Enterprises Ltd., is set raise up to US$625 million in wha ...
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- Australian Coal Association
- Anglo American - United Kingdom
- Singapore Mercantile Exchange
- CNBM International Corporation - China
- Iligan Light & Power Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Global Business Power Corporation, Philippines
- Mercuria Energy - Indonesia
- Orica Mining Services - Indonesia
- Kobexindo Tractors - Indoneisa
- New Zealand Coal & Carbon
- Central Java Power - Indonesia
- Gujarat Sidhee Cement - India
- Coal and Oil Company - UAE
- LBH Netherlands Bv - Netherlands
- Renaissance Capital - South Africa
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Metalloyd Limited - United Kingdom
- Offshore Bulk Terminal Pte Ltd, Singapore
- GMR Energy Limited - India
- Posco Energy - South Korea
- Kideco Jaya Agung - Indonesia
- Straits Asia Resources Limited - Singapore
- Holcim Trading Pte Ltd - Singapore
- MS Steel International - UAE
- Romanian Commodities Exchange
- IHS Mccloskey Coal Group - USA
- Parry Sugars Refinery, India
- Dalmia Cement Bharat India
- Intertek Mineral Services - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Sarangani Energy Corporation, Philippines
- Agrawal Coal Company - India
- Bhushan Steel Limited - India
- Indian Oil Corporation Limited
- Kohat Cement Company Ltd. - Pakistan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mjunction Services Limited - India
- Alfred C Toepfer International GmbH - Germany
- GN Power Mariveles Coal Plant, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- PTC India Limited - India
- Kaltim Prima Coal - Indonesia
- Sree Jayajothi Cements Limited - India
- Sical Logistics Limited - India
- Mintek Dendrill Indonesia
- Coalindo Energy - Indonesia
- PowerSource Philippines DevCo
- Chamber of Mines of South Africa
- Karbindo Abesyapradhi - Indoneisa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Global Green Power PLC Corporation, Philippines
- Economic Council, Georgia
- GAC Shipping (India) Pvt Ltd
- Energy Link Ltd, New Zealand
- Salva Resources Pvt Ltd - India
- Parliament of New Zealand
- PNOC Exploration Corporation - Philippines
- Eastern Coal Council - USA
- Xindia Steels Limited - India
- Medco Energi Mining Internasional
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Directorate General of MIneral and Coal - Indonesia
- Ministry of Finance - Indonesia
- Vizag Seaport Private Limited - India
- Uttam Galva Steels Limited - India
- Heidelberg Cement - Germany
- Cement Manufacturers Association - India
- Banpu Public Company Limited - Thailand
- European Bulk Services B.V. - Netherlands
- Siam City Cement PLC, Thailand
- Timah Investasi Mineral - Indoneisa
- Wilmar Investment Holdings
- Sakthi Sugars Limited - India
- Edison Trading Spa - Italy
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Larsen & Toubro Limited - India
- Manunggal Multi Energi - Indonesia
- Electricity Authority, New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- SMG Consultants - Indonesia
- Wood Mackenzie - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- International Coal Ventures Pvt Ltd - India
- Interocean Group of Companies - India
- Latin American Coal - Colombia
- Chettinad Cement Corporation Ltd - India
- Karaikal Port Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Gujarat Mineral Development Corp Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Semirara Mining and Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Indian Energy Exchange, India
- Malabar Cements Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Siam City Cement - Thailand
- Marubeni Corporation - India
- Orica Australia Pty. Ltd.
- Billiton Holdings Pty Ltd - Australia
- SN Aboitiz Power Inc, Philippines
- CIMB Investment Bank - Malaysia
- Baramulti Group, Indonesia
- Bukit Baiduri Energy - Indonesia
- Ministry of Transport, Egypt
- TNB Fuel Sdn Bhd - Malaysia
- Indonesian Coal Mining Association
- Australian Commodity Traders Exchange
- McConnell Dowell - Australia
- White Energy Company Limited
- Electricity Generating Authority of Thailand
- Georgia Ports Authority, United States
- GVK Power & Infra Limited - India
- Cigading International Bulk Terminal - Indonesia
- Lanco Infratech Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Ceylon Electricity Board - Sri Lanka
- Semirara Mining Corp, Philippines
- The State Trading Corporation of India Ltd
- Therma Luzon, Inc, Philippines
- Africa Commodities Group - South Africa
- Deloitte Consulting - India
- Coastal Gujarat Power Limited - India
- London Commodity Brokers - England
- Mercator Lines Limited - India
- Pendopo Energi Batubara - Indonesia
- TeaM Sual Corporation - Philippines
- Indogreen Group - Indonesia
- Simpson Spence & Young - Indonesia
- Kapuas Tunggal Persada - Indonesia
- IEA Clean Coal Centre - UK
- Kepco SPC Power Corporation, Philippines
- Merrill Lynch Commodities Europe
- Goldman Sachs - Singapore
- South Luzon Thermal Energy Corporation
- Eastern Energy - Thailand
- Bangladesh Power Developement Board
- Jaiprakash Power Ventures ltd
- Petron Corporation, Philippines
- Planning Commission, India
- Bharathi Cement Corporation - India
- Oldendorff Carriers - Singapore
- Riau Bara Harum - Indonesia
- Price Waterhouse Coopers - Russia
- Indika Energy - Indonesia
- Star Paper Mills Limited - India
- Grasim Industreis Ltd - India
- OPG Power Generation Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Port Waratah Coal Services - Australia
- Power Finance Corporation Ltd., India
- Neyveli Lignite Corporation Ltd, - India
- Savvy Resources Ltd - HongKong
- Samtan Co., Ltd - South Korea
- India Bulls Power Limited - India
- Standard Chartered Bank - UAE
- Essar Steel Hazira Ltd - India
- Trasteel International SA, Italy
- Central Electricity Authority - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Thai Mozambique Logistica
- Antam Resourcindo - Indonesia
- Kartika Selabumi Mining - Indonesia
- Videocon Industries ltd - India
- Altura Mining Limited, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Formosa Plastics Group - Taiwan
- Petrochimia International Co. Ltd.- Taiwan
- Tamil Nadu electricity Board
- The University of Queensland
- Bhatia International Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Attock Cement Pakistan Limited
- Global Coal Blending Company Limited - Australia
- Asmin Koalindo Tuhup - Indonesia
- Borneo Indobara - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Ministry of Mines - Canada
- Minerals Council of Australia
- Maheswari Brothers Coal Limited - India
- Meralco Power Generation, Philippines
- The Treasury - Australian Government
- Directorate Of Revenue Intelligence - India
- Independent Power Producers Association of India
- San Jose City I Power Corp, Philippines
- Sindya Power Generating Company Private Ltd
- Energy Development Corp, Philippines
- Jindal Steel & Power Ltd - India
- Commonwealth Bank - Australia
- Bayan Resources Tbk. - Indonesia
- Aditya Birla Group - India
- Binh Thuan Hamico - Vietnam
- Bhoruka Overseas - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Globalindo Alam Lestari - Indonesia
- ASAPP Information Group - India
- VISA Power Limited - India
- Rio Tinto Coal - Australia
- Meenaskhi Energy Private Limited - India
- Carbofer General Trading SA - India
- Vedanta Resources Plc - India
- ICICI Bank Limited - India
- Sojitz Corporation - Japan
- Barasentosa Lestari - Indonesia
- Kumho Petrochemical, South Korea
- Sinarmas Energy and Mining - Indonesia
- Bukit Makmur.PT - Indonesia
- Aboitiz Power Corporation - Philippines
- Makarim & Taira - Indonesia
- Thiess Contractors Indonesia
- Ambuja Cements Ltd - India
- SMC Global Power, Philippines
- Ind-Barath Power Infra Limited - India
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