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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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Saturday, 04 July 09
S. AFRICA'S RICHARDS BAY TO CAP NEW COAL VOLUMES, MININGMX SAYS
South Africa’s Richards Bay Coal Terminal is proposing restrictions on the quotas it awards to coal exporters from the so-called Phase 5 expansi ...
Saturday, 04 July 09
DALRYMPLE BAY COAL TERMINAL EXPANSION COMPLETE
BABCOCK & Brown Infrastructure has completed expansion of the Dalrymple Bay Coal Terminal (DBCT) near Mackay, Queensland.
The terminal is now ...
Friday, 03 July 09
CHINA SHENHUA TO DOUBLE COAL CAPACITY BY 2014-PAPER
China Shenhua Energy Co Ltd plans to double its annual coal production capacity by 2014 from this year's level, the China Securities Journal report ...
Friday, 03 July 09
UKRAINE CUTS COAL PRODUCTION 9.3 PERCENT IN H1
Ukraine reduced coal production approximately 9.3%, or by 3.673 million tonnes, to 35.879 million tonnes in the first half of 2009 compared to the s ...
Thursday, 02 July 09
PETCOKE BOOMS AS CEMENT MAKERS TRY TO REPLACE COAL
* Cement makers led by Asia chase petcoke to replace coal
* Petcoke prices up $10/T Feb-Jun, set to rise further
* Domestic U.S. petcoke demand ma ...
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- Indika Energy - Indonesia
- Coalindo Energy - Indonesia
- Power Finance Corporation Ltd., India
- Sojitz Corporation - Japan
- Medco Energi Mining Internasional
- Kohat Cement Company Ltd. - Pakistan
- Xindia Steels Limited - India
- Bhatia International Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Mineral Development Corp Ltd - India
- Dalmia Cement Bharat India
- Holcim Trading Pte Ltd - Singapore
- Australian Coal Association
- LBH Netherlands Bv - Netherlands
- Bangladesh Power Developement Board
- Coal and Oil Company - UAE
- Chettinad Cement Corporation Ltd - India
- Petron Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kumho Petrochemical, South Korea
- Africa Commodities Group - South Africa
- Commonwealth Bank - Australia
- Semirara Mining Corp, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Globalindo Alam Lestari - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Chamber of Mines of South Africa
- Bahari Cakrawala Sebuku - Indonesia
- Ministry of Finance - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- San Jose City I Power Corp, Philippines
- Semirara Mining and Power Corporation, Philippines
- Price Waterhouse Coopers - Russia
- Directorate General of MIneral and Coal - Indonesia
- PTC India Limited - India
- Indian Oil Corporation Limited
- SMG Consultants - Indonesia
- Sical Logistics Limited - India
- ASAPP Information Group - India
- PNOC Exploration Corporation - Philippines
- Interocean Group of Companies - India
- TNB Fuel Sdn Bhd - Malaysia
- Indo Tambangraya Megah - Indonesia
- Eastern Coal Council - USA
- Baramulti Group, Indonesia
- Central Electricity Authority - India
- Leighton Contractors Pty Ltd - Australia
- Parry Sugars Refinery, India
- Sarangani Energy Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- The University of Queensland
- Sindya Power Generating Company Private Ltd
- Wilmar Investment Holdings
- AsiaOL BioFuels Corp., Philippines
- Renaissance Capital - South Africa
- Eastern Energy - Thailand
- Romanian Commodities Exchange
- Riau Bara Harum - Indonesia
- Orica Mining Services - Indonesia
- Salva Resources Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- CIMB Investment Bank - Malaysia
- IEA Clean Coal Centre - UK
- Bulk Trading Sa - Switzerland
- TeaM Sual Corporation - Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Tamil Nadu electricity Board
- VISA Power Limited - India
- Larsen & Toubro Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- India Bulls Power Limited - India
- Manunggal Multi Energi - Indonesia
- McConnell Dowell - Australia
- Marubeni Corporation - India
- Electricity Authority, New Zealand
- Bhushan Steel Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Economic Council, Georgia
- Bharathi Cement Corporation - India
- Indian Energy Exchange, India
- Thiess Contractors Indonesia
- Banpu Public Company Limited - Thailand
- Intertek Mineral Services - Indonesia
- Vizag Seaport Private Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Meralco Power Generation, Philippines
- Karaikal Port Pvt Ltd - India
- Malabar Cements Ltd - India
- OPG Power Generation Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Sakthi Sugars Limited - India
- Altura Mining Limited, Indonesia
- Georgia Ports Authority, United States
- Grasim Industreis Ltd - India
- Thai Mozambique Logistica
- Timah Investasi Mineral - Indoneisa
- Attock Cement Pakistan Limited
- Antam Resourcindo - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Jindal Steel & Power Ltd - India
- Latin American Coal - Colombia
- Ambuja Cements Ltd - India
- Toyota Tsusho Corporation, Japan
- Port Waratah Coal Services - Australia
- Anglo American - United Kingdom
- Indonesian Coal Mining Association
- GVK Power & Infra Limited - India
- Global Coal Blending Company Limited - Australia
- Siam City Cement PLC, Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Transport, Egypt
- ICICI Bank Limited - India
- Directorate Of Revenue Intelligence - India
- Therma Luzon, Inc, Philippines
- The Treasury - Australian Government
- SMC Global Power, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Meenaskhi Energy Private Limited - India
- South Luzon Thermal Energy Corporation
- Miang Besar Coal Terminal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Metalloyd Limited - United Kingdom
- Asmin Koalindo Tuhup - Indonesia
- IHS Mccloskey Coal Group - USA
- Lanco Infratech Ltd - India
- Indogreen Group - Indonesia
- Standard Chartered Bank - UAE
- Mercator Lines Limited - India
- Pendopo Energi Batubara - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Rashtriya Ispat Nigam Limited - India
- Borneo Indobara - Indonesia
- Coastal Gujarat Power Limited - India
- Siam City Cement - Thailand
- Essar Steel Hazira Ltd - India
- European Bulk Services B.V. - Netherlands
- Global Business Power Corporation, Philippines
- Carbofer General Trading SA - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sinarmas Energy and Mining - Indonesia
- Sree Jayajothi Cements Limited - India
- Ministry of Mines - Canada
- Bukit Baiduri Energy - Indonesia
- Mintek Dendrill Indonesia
- Rio Tinto Coal - Australia
- Bukit Makmur.PT - Indonesia
- GMR Energy Limited - India
- Kideco Jaya Agung - Indonesia
- Billiton Holdings Pty Ltd - Australia
- White Energy Company Limited
- PowerSource Philippines DevCo
- Australian Commodity Traders Exchange
- Gujarat Sidhee Cement - India
- Pipit Mutiara Jaya. PT, Indonesia
- Energy Development Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Cement Manufacturers Association - India
- Singapore Mercantile Exchange
- Minerals Council of Australia
- Agrawal Coal Company - India
- International Coal Ventures Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Formosa Plastics Group - Taiwan
- Videocon Industries ltd - India
- Independent Power Producers Association of India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Goldman Sachs - Singapore
- Edison Trading Spa - Italy
- Oldendorff Carriers - Singapore
- SN Aboitiz Power Inc, Philippines
- Electricity Generating Authority of Thailand
- Heidelberg Cement - Germany
- Tata Chemicals Ltd - India
- New Zealand Coal & Carbon
- CNBM International Corporation - China
- Gujarat Electricity Regulatory Commission - India
- Ind-Barath Power Infra Limited - India
- GAC Shipping (India) Pvt Ltd
- Barasentosa Lestari - Indonesia
- Global Green Power PLC Corporation, Philippines
- Makarim & Taira - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Uttam Galva Steels Limited - India
- Jaiprakash Power Ventures ltd
- Vedanta Resources Plc - India
- Kobexindo Tractors - Indoneisa
- Merrill Lynch Commodities Europe
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Samtan Co., Ltd - South Korea
- Central Java Power - Indonesia
- Aditya Birla Group - India
- The State Trading Corporation of India Ltd
- Karbindo Abesyapradhi - Indoneisa
- Madhucon Powers Ltd - India
- Energy Link Ltd, New Zealand
- Bhoruka Overseas - Indonesia
- Bayan Resources Tbk. - Indonesia
- Orica Australia Pty. Ltd.
- London Commodity Brokers - England
- Neyveli Lignite Corporation Ltd, - India
- Maheswari Brothers Coal Limited - India
- MS Steel International - UAE
- Simpson Spence & Young - Indonesia
- Mercuria Energy - Indonesia
- Planning Commission, India
- Mjunction Services Limited - India
- Parliament of New Zealand
- Star Paper Mills Limited - India
- Binh Thuan Hamico - Vietnam
- Kepco SPC Power Corporation, Philippines
- Trasteel International SA, Italy
- Deloitte Consulting - India
- Posco Energy - South Korea
- Straits Asia Resources Limited - Singapore
- Wood Mackenzie - Singapore
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