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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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Wednesday, 15 July 09
INDONESIAN FIRM SUBMITS LOWEST BID FOR NAPOCOR COAL
ABS-CBN News reported that, An Indonesian firm offered to supply 195,000 tons of thermal coal to top Philippine electricity producer National Power ...
Wednesday, 15 July 09
INDIAN COAL MINISTRY TO CONSIDER POWER PLANT ALTERATION PROPOSALS
PTI reported that the coal ministry has agreed to consider applications of power plants seeking long term coal linkage due to enhancement in electri ...
Wednesday, 15 July 09
SHENHUA STARTS WORK ON INDONESIA POWER PLANT
Bloomberg reported that China Shenhua Guohau Power a unit of China’s biggest coal producer started construction of a power plant and mine in I ...
Wednesday, 15 July 09
PLN OPENS TENDERS FOR SUPPLY OF LOW - GRADE COAL
The Jakarta Globe, a Indonesian new paper reported that, State power utility PT PLN has opened a tender for the supply of low-grade coal for the nat ...
Tuesday, 14 July 09
MMTC SAYS MAY RE-TENDER FOR 12.5 MLN T COAL
* KIS has demanded investigation into procurement
* MMTC says import delays could add to power shortages
Alibaba reported that, India's s ...
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- TNB Fuel Sdn Bhd - Malaysia
- Kideco Jaya Agung - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Indogreen Group - Indonesia
- Meenaskhi Energy Private Limited - India
- Therma Luzon, Inc, Philippines
- Aditya Birla Group - India
- PetroVietnam Power Coal Import and Supply Company
- White Energy Company Limited
- SMC Global Power, Philippines
- Trasteel International SA, Italy
- Parry Sugars Refinery, India
- Mjunction Services Limited - India
- Indo Tambangraya Megah - Indonesia
- Bangladesh Power Developement Board
- ASAPP Information Group - India
- Sree Jayajothi Cements Limited - India
- Mintek Dendrill Indonesia
- Rio Tinto Coal - Australia
- Independent Power Producers Association of India
- GAC Shipping (India) Pvt Ltd
- Vedanta Resources Plc - India
- Posco Energy - South Korea
- Chettinad Cement Corporation Ltd - India
- Banpu Public Company Limited - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- LBH Netherlands Bv - Netherlands
- Holcim Trading Pte Ltd - Singapore
- New Zealand Coal & Carbon
- GMR Energy Limited - India
- Bhushan Steel Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Tata Chemicals Ltd - India
- European Bulk Services B.V. - Netherlands
- Malabar Cements Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Ceylon Electricity Board - Sri Lanka
- International Coal Ventures Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Deloitte Consulting - India
- Metalloyd Limited - United Kingdom
- Electricity Authority, New Zealand
- Wood Mackenzie - Singapore
- Parliament of New Zealand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Singapore Mercantile Exchange
- Energy Link Ltd, New Zealand
- Star Paper Mills Limited - India
- Formosa Plastics Group - Taiwan
- Lanco Infratech Ltd - India
- Medco Energi Mining Internasional
- PNOC Exploration Corporation - Philippines
- Indian Oil Corporation Limited
- Intertek Mineral Services - Indonesia
- Global Coal Blending Company Limited - Australia
- GVK Power & Infra Limited - India
- Jaiprakash Power Ventures ltd
- Ambuja Cements Ltd - India
- Planning Commission, India
- Eastern Coal Council - USA
- Bulk Trading Sa - Switzerland
- Semirara Mining and Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- VISA Power Limited - India
- Billiton Holdings Pty Ltd - Australia
- Bharathi Cement Corporation - India
- India Bulls Power Limited - India
- Power Finance Corporation Ltd., India
- SN Aboitiz Power Inc, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sical Logistics Limited - India
- Kartika Selabumi Mining - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Thai Mozambique Logistica
- Gujarat Sidhee Cement - India
- Pendopo Energi Batubara - Indonesia
- Iligan Light & Power Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Toyota Tsusho Corporation, Japan
- Sojitz Corporation - Japan
- Karbindo Abesyapradhi - Indoneisa
- Maharashtra Electricity Regulatory Commission - India
- Vizag Seaport Private Limited - India
- TeaM Sual Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- Xindia Steels Limited - India
- AsiaOL BioFuels Corp., Philippines
- Grasim Industreis Ltd - India
- Marubeni Corporation - India
- Rashtriya Ispat Nigam Limited - India
- Indika Energy - Indonesia
- Cement Manufacturers Association - India
- MS Steel International - UAE
- Globalindo Alam Lestari - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Agrawal Coal Company - India
- GN Power Mariveles Coal Plant, Philippines
- Australian Coal Association
- Attock Cement Pakistan Limited
- Standard Chartered Bank - UAE
- McConnell Dowell - Australia
- PTC India Limited - India
- Thiess Contractors Indonesia
- SMG Consultants - Indonesia
- Wilmar Investment Holdings
- Port Waratah Coal Services - Australia
- Kalimantan Lumbung Energi - Indonesia
- Interocean Group of Companies - India
- Baramulti Group, Indonesia
- Altura Mining Limited, Indonesia
- Coal and Oil Company - UAE
- The State Trading Corporation of India Ltd
- Cigading International Bulk Terminal - Indonesia
- Essar Steel Hazira Ltd - India
- Chamber of Mines of South Africa
- Samtan Co., Ltd - South Korea
- Merrill Lynch Commodities Europe
- Antam Resourcindo - Indonesia
- Global Green Power PLC Corporation, Philippines
- Economic Council, Georgia
- Maheswari Brothers Coal Limited - India
- Georgia Ports Authority, United States
- Ind-Barath Power Infra Limited - India
- Ministry of Mines - Canada
- Edison Trading Spa - Italy
- Tamil Nadu electricity Board
- Petrochimia International Co. Ltd.- Taiwan
- Sarangani Energy Corporation, Philippines
- Coalindo Energy - Indonesia
- London Commodity Brokers - England
- Heidelberg Cement - Germany
- Global Business Power Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bukit Baiduri Energy - Indonesia
- Carbofer General Trading SA - India
- Ministry of Finance - Indonesia
- Mercuria Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Savvy Resources Ltd - HongKong
- Jindal Steel & Power Ltd - India
- Bhatia International Limited - India
- Energy Development Corp, Philippines
- Sakthi Sugars Limited - India
- Kobexindo Tractors - Indoneisa
- Riau Bara Harum - Indonesia
- Eastern Energy - Thailand
- Siam City Cement - Thailand
- Gujarat Electricity Regulatory Commission - India
- Minerals Council of Australia
- Latin American Coal - Colombia
- Africa Commodities Group - South Africa
- Simpson Spence & Young - Indonesia
- Oldendorff Carriers - Singapore
- Central Java Power - Indonesia
- Kaltim Prima Coal - Indonesia
- Indian Energy Exchange, India
- Central Electricity Authority - India
- Sinarmas Energy and Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Videocon Industries ltd - India
- Coastal Gujarat Power Limited - India
- ICICI Bank Limited - India
- Meralco Power Generation, Philippines
- South Luzon Thermal Energy Corporation
- Romanian Commodities Exchange
- Goldman Sachs - Singapore
- Commonwealth Bank - Australia
- Renaissance Capital - South Africa
- Borneo Indobara - Indonesia
- Indonesian Coal Mining Association
- Makarim & Taira - Indonesia
- Dalmia Cement Bharat India
- Kumho Petrochemical, South Korea
- Price Waterhouse Coopers - Russia
- Straits Asia Resources Limited - Singapore
- Leighton Contractors Pty Ltd - Australia
- The Treasury - Australian Government
- OPG Power Generation Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Electricity Generating Authority of Thailand
- PowerSource Philippines DevCo
- Sindya Power Generating Company Private Ltd
- IHS Mccloskey Coal Group - USA
- Directorate General of MIneral and Coal - Indonesia
- Binh Thuan Hamico - Vietnam
- Barasentosa Lestari - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Karaikal Port Pvt Ltd - India
- Orica Mining Services - Indonesia
- Australian Commodity Traders Exchange
- Miang Besar Coal Terminal - Indonesia
- Mercator Lines Limited - India
- CNBM International Corporation - China
- The University of Queensland
- Timah Investasi Mineral - Indoneisa
- Salva Resources Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Anglo American - United Kingdom
- Bayan Resources Tbk. - Indonesia
- Madhucon Powers Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Ministry of Transport, Egypt
- Gujarat Mineral Development Corp Ltd - India
- Semirara Mining Corp, Philippines
- Petron Corporation, Philippines
- Orica Australia Pty. Ltd.
- Bukit Asam (Persero) Tbk - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Kepco SPC Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- Uttam Galva Steels Limited - India
- Aboitiz Power Corporation - Philippines
- Larsen & Toubro Limited - India
- Directorate Of Revenue Intelligence - India
- Siam City Cement PLC, Thailand
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