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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, 20 July 09
INDONESIA PRODUCES 72 MILLION MT IN FIRST HALF OF YEAR: OFFICIAL
Indonesia produced 72 million mt of coal in the first half of 2009, or 31.3% of the government’s target this year, a senior government officia ...
Sunday, 19 July 09
JINDAL S&P IN TALKS TO BUY SA COAL MINE FOR RS 350-400 CR (US$ 80 - 90 MILLION)
Economic Times reported that, Naveen Jindal-led Jindal Steel & Power (JSPL) is acquiring a thermal coal mine in South Africa, a top company exec ...
Saturday, 18 July 09
REN POWER CZ COMMISSIONS ANOTHER PHOTOVOLTAIC POWER STATION
COALspot.com (Press Release): REN Power CZ, a company in the Czech Coal Group, has put into operation another photovoltaic power station. The plant ...
Saturday, 18 July 09
THE FUTURE FOR SUPRAMAX FOR NEXT 3 YEARS TILL 2012 WOULD BE AROUND US$ 13,500 PER DAY - CAPT. REDDY
COALspot.com ( Singapore): The market moved up sharply this week , which was quite unexpected.
The BDI was up by 557 which is an increase of 18 ...
Friday, 17 July 09
CHINA COAL-SPOT PRICES EDGE LOWER, SUPPLY APLENTY
China Mining reported that, spot prices in China's top coal shipping port Qinhuangdao edged lower from a week earlier, as supply grew, offsetting t ...
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- Antam Resourcindo - Indonesia
- Coalindo Energy - Indonesia
- Standard Chartered Bank - UAE
- Chettinad Cement Corporation Ltd - India
- Mercator Lines Limited - India
- Siam City Cement - Thailand
- Trasteel International SA, Italy
- Ministry of Transport, Egypt
- Bukit Makmur.PT - Indonesia
- Power Finance Corporation Ltd., India
- IHS Mccloskey Coal Group - USA
- Pendopo Energi Batubara - Indonesia
- Toyota Tsusho Corporation, Japan
- Sinarmas Energy and Mining - Indonesia
- Bayan Resources Tbk. - Indonesia
- Cement Manufacturers Association - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Holcim Trading Pte Ltd - Singapore
- Planning Commission, India
- Edison Trading Spa - Italy
- Vedanta Resources Plc - India
- GVK Power & Infra Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Karaikal Port Pvt Ltd - India
- Central Electricity Authority - India
- McConnell Dowell - Australia
- Kumho Petrochemical, South Korea
- Georgia Ports Authority, United States
- Leighton Contractors Pty Ltd - Australia
- Renaissance Capital - South Africa
- Indian Oil Corporation Limited
- Tata Chemicals Ltd - India
- Videocon Industries ltd - India
- Madhucon Powers Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Baramulti Group, Indonesia
- Miang Besar Coal Terminal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- CNBM International Corporation - China
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Aditya Birla Group - India
- Energy Development Corp, Philippines
- Formosa Plastics Group - Taiwan
- London Commodity Brokers - England
- Goldman Sachs - Singapore
- PTC India Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Meenaskhi Energy Private Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Port Waratah Coal Services - Australia
- Karbindo Abesyapradhi - Indoneisa
- European Bulk Services B.V. - Netherlands
- Deloitte Consulting - India
- Bukit Baiduri Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Commonwealth Bank - Australia
- Petron Corporation, Philippines
- Latin American Coal - Colombia
- Indonesian Coal Mining Association
- Bukit Asam (Persero) Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- Siam City Cement PLC, Thailand
- Eastern Energy - Thailand
- Vizag Seaport Private Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- IEA Clean Coal Centre - UK
- International Coal Ventures Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Coastal Gujarat Power Limited - India
- Samtan Co., Ltd - South Korea
- Star Paper Mills Limited - India
- Global Green Power PLC Corporation, Philippines
- Interocean Group of Companies - India
- Dalmia Cement Bharat India
- Agrawal Coal Company - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Essar Steel Hazira Ltd - India
- Mercuria Energy - Indonesia
- Chamber of Mines of South Africa
- Directorate Of Revenue Intelligence - India
- CIMB Investment Bank - Malaysia
- Mintek Dendrill Indonesia
- Wilmar Investment Holdings
- Romanian Commodities Exchange
- Africa Commodities Group - South Africa
- Price Waterhouse Coopers - Russia
- White Energy Company Limited
- Singapore Mercantile Exchange
- Coal and Oil Company - UAE
- Maharashtra Electricity Regulatory Commission - India
- OPG Power Generation Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Bharathi Cement Corporation - India
- The University of Queensland
- Uttam Galva Steels Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Altura Mining Limited, Indonesia
- Indogreen Group - Indonesia
- Parliament of New Zealand
- Oldendorff Carriers - Singapore
- Attock Cement Pakistan Limited
- Wood Mackenzie - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ministry of Finance - Indonesia
- SN Aboitiz Power Inc, Philippines
- Global Business Power Corporation, Philippines
- Jaiprakash Power Ventures ltd
- SMG Consultants - Indonesia
- Indian Energy Exchange, India
- Bulk Trading Sa - Switzerland
- Larsen & Toubro Limited - India
- Iligan Light & Power Inc, Philippines
- MS Steel International - UAE
- Maheswari Brothers Coal Limited - India
- Independent Power Producers Association of India
- The State Trading Corporation of India Ltd
- LBH Netherlands Bv - Netherlands
- Semirara Mining and Power Corporation, Philippines
- Parry Sugars Refinery, India
- Energy Link Ltd, New Zealand
- Orica Mining Services - Indonesia
- Gujarat Sidhee Cement - India
- Therma Luzon, Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Mjunction Services Limited - India
- Medco Energi Mining Internasional
- Thai Mozambique Logistica
- Bhoruka Overseas - Indonesia
- VISA Power Limited - India
- Sical Logistics Limited - India
- San Jose City I Power Corp, Philippines
- The Treasury - Australian Government
- Malabar Cements Ltd - India
- Ambuja Cements Ltd - India
- Ind-Barath Power Infra Limited - India
- Ministry of Mines - Canada
- ASAPP Information Group - India
- Carbofer General Trading SA - India
- Makarim & Taira - Indonesia
- Xindia Steels Limited - India
- TeaM Sual Corporation - Philippines
- Indika Energy - Indonesia
- SMC Global Power, Philippines
- Manunggal Multi Energi - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Anglo American - United Kingdom
- Vijayanagar Sugar Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Thiess Contractors Indonesia
- Sindya Power Generating Company Private Ltd
- Binh Thuan Hamico - Vietnam
- Straits Asia Resources Limited - Singapore
- Indo Tambangraya Megah - Indonesia
- Semirara Mining Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Minerals Council of Australia
- Electricity Authority, New Zealand
- Sarangani Energy Corporation, Philippines
- Central Java Power - Indonesia
- Banpu Public Company Limited - Thailand
- Orica Australia Pty. Ltd.
- GN Power Mariveles Coal Plant, Philippines
- Tamil Nadu electricity Board
- Kapuas Tunggal Persada - Indonesia
- South Luzon Thermal Energy Corporation
- Australian Coal Association
- ICICI Bank Limited - India
- India Bulls Power Limited - India
- Salva Resources Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Sakthi Sugars Limited - India
- PowerSource Philippines DevCo
- Kepco SPC Power Corporation, Philippines
- Eastern Coal Council - USA
- Kobexindo Tractors - Indoneisa
- GMR Energy Limited - India
- Electricity Generating Authority of Thailand
- Alfred C Toepfer International GmbH - Germany
- Aboitiz Power Corporation - Philippines
- Simpson Spence & Young - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- New Zealand Coal & Carbon
- Economic Council, Georgia
- Timah Investasi Mineral - Indoneisa
- Merrill Lynch Commodities Europe
- GAC Shipping (India) Pvt Ltd
- Barasentosa Lestari - Indonesia
- Posco Energy - South Korea
- Bhushan Steel Limited - India
- Riau Bara Harum - Indonesia
- Sojitz Corporation - Japan
- Borneo Indobara - Indonesia
- Savvy Resources Ltd - HongKong
- Neyveli Lignite Corporation Ltd, - India
- Grasim Industreis Ltd - India
- Bangladesh Power Developement Board
- Metalloyd Limited - United Kingdom
- Kartika Selabumi Mining - Indonesia
- Rio Tinto Coal - Australia
- Gujarat Electricity Regulatory Commission - India
- Heidelberg Cement - Germany
- Meralco Power Generation, Philippines
- Australian Commodity Traders Exchange
- Kaltim Prima Coal - Indonesia
- Marubeni Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- Intertek Mineral Services - Indonesia
- Bhatia International Limited - India
- Lanco Infratech Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Jindal Steel & Power Ltd - India
- Sree Jayajothi Cements Limited - India
- Ceylon Electricity Board - Sri Lanka
- Krishnapatnam Port Company Ltd. - India
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