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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, 07 July 09
Q+A - INDONESIA MINING SECTOR FACES ELECTION RISKS - REUTERS
Indonesia has struggled to lure foreign investment to its mining sector in recent years, and the nationalist line on resource exploitation taken by ...
Tuesday, 07 July 09
INDIKA ENERGY COMPLETES THE ACQUISITION OF PETROSEA
TAMBANG reported that, PT Indika Energy, Tbk has officially announced that it has completed the acquisition of PT Petrosea, Tbk. from Clough Interna ...
Tuesday, 07 July 09
RUSSIAN AUDITORS ATTACK COAL EXPORTERS OVER PRICING
Russia's budget is losing substantial revenues because the country's exporters ship coal overseas at artificially low prices through various offsh ...
Tuesday, 07 July 09
RBCT COAL EXPORTS TO REMAIN BELOW CAPACITY IN 2009
Coal volumes railed to South Africa’s Richards Bay Coal Terminal are continuing to fall far short of the corridor’s nameplate yearly cap ...
Tuesday, 07 July 09
TATA POWER AID THE INDONESIAN COAL MINES
BL reported that Mr Prasad Menon MD of TATA Power aid the Indonesian coal mines PT Kaltim Prima Coal and PT Arutmin Indonesia in which TATA Power ha ...
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- Coalindo Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Wood Mackenzie - Singapore
- Port Waratah Coal Services - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- Bukit Baiduri Energy - Indonesia
- Meralco Power Generation, Philippines
- Ministry of Transport, Egypt
- Alfred C Toepfer International GmbH - Germany
- Meenaskhi Energy Private Limited - India
- Kumho Petrochemical, South Korea
- Kartika Selabumi Mining - Indonesia
- SN Aboitiz Power Inc, Philippines
- CIMB Investment Bank - Malaysia
- Indo Tambangraya Megah - Indonesia
- Ministry of Mines - Canada
- European Bulk Services B.V. - Netherlands
- LBH Netherlands Bv - Netherlands
- GVK Power & Infra Limited - India
- Bharathi Cement Corporation - India
- Bulk Trading Sa - Switzerland
- Orica Australia Pty. Ltd.
- Bahari Cakrawala Sebuku - Indonesia
- Riau Bara Harum - Indonesia
- Aditya Birla Group - India
- Indian Energy Exchange, India
- Electricity Generating Authority of Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Grasim Industreis Ltd - India
- PowerSource Philippines DevCo
- Globalindo Alam Lestari - Indonesia
- Thai Mozambique Logistica
- Cigading International Bulk Terminal - Indonesia
- Bhushan Steel Limited - India
- Goldman Sachs - Singapore
- London Commodity Brokers - England
- Directorate General of MIneral and Coal - Indonesia
- Commonwealth Bank - Australia
- Timah Investasi Mineral - Indoneisa
- Mintek Dendrill Indonesia
- Intertek Mineral Services - Indonesia
- Orica Mining Services - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Directorate Of Revenue Intelligence - India
- VISA Power Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- PetroVietnam Power Coal Import and Supply Company
- Tata Chemicals Ltd - India
- OPG Power Generation Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Miang Besar Coal Terminal - Indonesia
- Essar Steel Hazira Ltd - India
- SMG Consultants - Indonesia
- Sojitz Corporation - Japan
- Central Electricity Authority - India
- Indian Oil Corporation Limited
- SMC Global Power, Philippines
- Kideco Jaya Agung - Indonesia
- CNBM International Corporation - China
- Mercuria Energy - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Chettinad Cement Corporation Ltd - India
- Wilmar Investment Holdings
- Sakthi Sugars Limited - India
- Cement Manufacturers Association - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Georgia Ports Authority, United States
- Parry Sugars Refinery, India
- Salva Resources Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Price Waterhouse Coopers - Russia
- Binh Thuan Hamico - Vietnam
- Thiess Contractors Indonesia
- Oldendorff Carriers - Singapore
- Coal and Oil Company - UAE
- Malabar Cements Ltd - India
- Lanco Infratech Ltd - India
- Energy Development Corp, Philippines
- Energy Link Ltd, New Zealand
- Attock Cement Pakistan Limited
- Romanian Commodities Exchange
- Kepco SPC Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- The University of Queensland
- Semirara Mining Corp, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Jorong Barutama Greston.PT - Indonesia
- Singapore Mercantile Exchange
- Rashtriya Ispat Nigam Limited - India
- Eastern Coal Council - USA
- IHS Mccloskey Coal Group - USA
- Agrawal Coal Company - India
- Vedanta Resources Plc - India
- Latin American Coal - Colombia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- ICICI Bank Limited - India
- Jindal Steel & Power Ltd - India
- Siam City Cement PLC, Thailand
- Minerals Council of Australia
- Borneo Indobara - Indonesia
- Carbofer General Trading SA - India
- White Energy Company Limited
- Pendopo Energi Batubara - Indonesia
- The Treasury - Australian Government
- Edison Trading Spa - Italy
- Kohat Cement Company Ltd. - Pakistan
- Bukit Makmur.PT - Indonesia
- GMR Energy Limited - India
- Global Coal Blending Company Limited - Australia
- Dalmia Cement Bharat India
- Standard Chartered Bank - UAE
- The State Trading Corporation of India Ltd
- Altura Mining Limited, Indonesia
- Eastern Energy - Thailand
- Renaissance Capital - South Africa
- McConnell Dowell - Australia
- MS Steel International - UAE
- Bhatia International Limited - India
- Bhoruka Overseas - Indonesia
- Coastal Gujarat Power Limited - India
- Medco Energi Mining Internasional
- Sree Jayajothi Cements Limited - India
- Banpu Public Company Limited - Thailand
- Bayan Resources Tbk. - Indonesia
- Sarangani Energy Corporation, Philippines
- Savvy Resources Ltd - HongKong
- International Coal Ventures Pvt Ltd - India
- Mercator Lines Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Mjunction Services Limited - India
- Planning Commission, India
- Merrill Lynch Commodities Europe
- Kapuas Tunggal Persada - Indonesia
- Siam City Cement - Thailand
- Electricity Authority, New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sinarmas Energy and Mining - Indonesia
- Ind-Barath Power Infra Limited - India
- Holcim Trading Pte Ltd - Singapore
- Indogreen Group - Indonesia
- Australian Commodity Traders Exchange
- Gujarat Sidhee Cement - India
- Toyota Tsusho Corporation, Japan
- ASAPP Information Group - India
- Simpson Spence & Young - Indonesia
- Barasentosa Lestari - Indonesia
- Xindia Steels Limited - India
- Interocean Group of Companies - India
- Indika Energy - Indonesia
- Marubeni Corporation - India
- Iligan Light & Power Inc, Philippines
- Sical Logistics Limited - India
- PTC India Limited - India
- Petron Corporation, Philippines
- Madhucon Powers Ltd - India
- Parliament of New Zealand
- Chamber of Mines of South Africa
- Kaltim Prima Coal - Indonesia
- Central Java Power - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Uttam Galva Steels Limited - India
- Gujarat Electricity Regulatory Commission - India
- Australian Coal Association
- Karbindo Abesyapradhi - Indoneisa
- Africa Commodities Group - South Africa
- Asmin Koalindo Tuhup - Indonesia
- Straits Asia Resources Limited - Singapore
- Global Business Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- TeaM Sual Corporation - Philippines
- Manunggal Multi Energi - Indonesia
- Independent Power Producers Association of India
- Trasteel International SA, Italy
- Jaiprakash Power Ventures ltd
- Baramulti Group, Indonesia
- Heidelberg Cement - Germany
- San Jose City I Power Corp, Philippines
- Makarim & Taira - Indonesia
- Larsen & Toubro Limited - India
- Antam Resourcindo - Indonesia
- Posco Energy - South Korea
- Ambuja Cements Ltd - India
- Star Paper Mills Limited - India
- Formosa Plastics Group - Taiwan
- Bangladesh Power Developement Board
- Leighton Contractors Pty Ltd - Australia
- PNOC Exploration Corporation - Philippines
- TNB Fuel Sdn Bhd - Malaysia
- IEA Clean Coal Centre - UK
- Videocon Industries ltd - India
- Indonesian Coal Mining Association
- Anglo American - United Kingdom
- Tamil Nadu electricity Board
- Kobexindo Tractors - Indoneisa
- Krishnapatnam Port Company Ltd. - India
- Karaikal Port Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- India Bulls Power Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Metalloyd Limited - United Kingdom
- Deloitte Consulting - India
- Maheswari Brothers Coal Limited - India
- Power Finance Corporation Ltd., India
- GAC Shipping (India) Pvt Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GN Power Mariveles Coal Plant, Philippines
- Rio Tinto Coal - Australia
- Ceylon Electricity Board - Sri Lanka
- Economic Council, Georgia
- Ministry of Finance - Indonesia
- New Zealand Coal & Carbon
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