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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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Friday, 26 June 09
BAYAN TARGETS GROSS PROFIT TO RISE BY 86.2 PERCENT
Local coal producer publicly listed PT Bayan Resources is targeting this year's gross profit to rise by 86.2 percent on the back of higher sales vo ...
Thursday, 25 June 09
INDIA'S ULTRATECH BUYS 500,000T S.AFRICA COAL
Indian cement maker Ultratech has bought 10 handymax cargoes of South African coal at $73.00-$74.00 a tonne CIF for July-September delivery, Indian ...
Wednesday, 24 June 09
NTPC BURNS MORE COAL TO PRODUCE ELECTRICITY
A tonne of coal is the same as another tonne of coal, you might think.
But power major NTPC Ltd is finding that this year’s coal is not yie ...
Wednesday, 24 June 09
NTPC, COAL INDIA TO BUY MINING ASSETS OVERSEAS
State-owned utility National Thermal Power Corporation (NTPC) and the largest coal producer Coal India are in advanced stages of acquiring mining as ...
Tuesday, 23 June 09
NEWCASTLE WEEKLY COAL EXPORTS DECREASE 15%; SHIP QUEUE RISES
Coal shipments from Australia’s Newcastle port, the world’s biggest export harbor for the fuel, fell 15 percent last week while the numb ...
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- Interocean Group of Companies - India
- Deloitte Consulting - India
- Chamber of Mines of South Africa
- Minerals Council of Australia
- Neyveli Lignite Corporation Ltd, - India
- Iligan Light & Power Inc, Philippines
- Bhoruka Overseas - Indonesia
- Thai Mozambique Logistica
- Goldman Sachs - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Energy Development Corp, Philippines
- Orica Australia Pty. Ltd.
- Merrill Lynch Commodities Europe
- Metalloyd Limited - United Kingdom
- Energy Link Ltd, New Zealand
- Larsen & Toubro Limited - India
- International Coal Ventures Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Renaissance Capital - South Africa
- Rashtriya Ispat Nigam Limited - India
- Carbofer General Trading SA - India
- Essar Steel Hazira Ltd - India
- South Luzon Thermal Energy Corporation
- Economic Council, Georgia
- PTC India Limited - India
- Orica Mining Services - Indonesia
- Global Green Power PLC Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Bayan Resources Tbk. - Indonesia
- White Energy Company Limited
- Borneo Indobara - Indonesia
- Coal and Oil Company - UAE
- Indika Energy - Indonesia
- Australian Commodity Traders Exchange
- Leighton Contractors Pty Ltd - Australia
- Ambuja Cements Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Gujarat Mineral Development Corp Ltd - India
- Riau Bara Harum - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- SMC Global Power, Philippines
- Eastern Energy - Thailand
- Eastern Coal Council - USA
- Vedanta Resources Plc - India
- IEA Clean Coal Centre - UK
- Bharathi Cement Corporation - India
- Sindya Power Generating Company Private Ltd
- Mercator Lines Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Jindal Steel & Power Ltd - India
- Vizag Seaport Private Limited - India
- Formosa Plastics Group - Taiwan
- GMR Energy Limited - India
- Xindia Steels Limited - India
- Manunggal Multi Energi - Indonesia
- Altura Mining Limited, Indonesia
- Sinarmas Energy and Mining - Indonesia
- Karaikal Port Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Gujarat Electricity Regulatory Commission - India
- Kaltim Prima Coal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dalmia Cement Bharat India
- Pendopo Energi Batubara - Indonesia
- Indonesian Coal Mining Association
- Central Electricity Authority - India
- Ministry of Mines - Canada
- Madhucon Powers Ltd - India
- Electricity Generating Authority of Thailand
- PNOC Exploration Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- Singapore Mercantile Exchange
- Kumho Petrochemical, South Korea
- Asmin Koalindo Tuhup - Indonesia
- Indian Energy Exchange, India
- Sree Jayajothi Cements Limited - India
- Heidelberg Cement - Germany
- Parry Sugars Refinery, India
- Simpson Spence & Young - Indonesia
- Edison Trading Spa - Italy
- Jorong Barutama Greston.PT - Indonesia
- Port Waratah Coal Services - Australia
- Semirara Mining and Power Corporation, Philippines
- Indian Oil Corporation Limited
- TeaM Sual Corporation - Philippines
- Power Finance Corporation Ltd., India
- McConnell Dowell - Australia
- Anglo American - United Kingdom
- TNB Fuel Sdn Bhd - Malaysia
- Latin American Coal - Colombia
- Standard Chartered Bank - UAE
- Global Coal Blending Company Limited - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Krishnapatnam Port Company Ltd. - India
- Attock Cement Pakistan Limited
- Medco Energi Mining Internasional
- Mjunction Services Limited - India
- New Zealand Coal & Carbon
- Directorate General of MIneral and Coal - Indonesia
- Oldendorff Carriers - Singapore
- Parliament of New Zealand
- AsiaOL BioFuels Corp., Philippines
- Planning Commission, India
- GVK Power & Infra Limited - India
- Toyota Tsusho Corporation, Japan
- Bulk Trading Sa - Switzerland
- Bahari Cakrawala Sebuku - Indonesia
- ASAPP Information Group - India
- Petron Corporation, Philippines
- Sojitz Corporation - Japan
- Aboitiz Power Corporation - Philippines
- Tata Chemicals Ltd - India
- Commonwealth Bank - Australia
- Aditya Birla Group - India
- Karbindo Abesyapradhi - Indoneisa
- PowerSource Philippines DevCo
- IHS Mccloskey Coal Group - USA
- Lanco Infratech Ltd - India
- Sakthi Sugars Limited - India
- SN Aboitiz Power Inc, Philippines
- Salva Resources Pvt Ltd - India
- Romanian Commodities Exchange
- Tamil Nadu electricity Board
- Indo Tambangraya Megah - Indonesia
- India Bulls Power Limited - India
- Marubeni Corporation - India
- Kalimantan Lumbung Energi - Indonesia
- Star Paper Mills Limited - India
- Kapuas Tunggal Persada - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- VISA Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Grasim Industreis Ltd - India
- Intertek Mineral Services - Indonesia
- Videocon Industries ltd - India
- Bukit Makmur.PT - Indonesia
- Wilmar Investment Holdings
- LBH Netherlands Bv - Netherlands
- San Jose City I Power Corp, Philippines
- OPG Power Generation Pvt Ltd - India
- Coalindo Energy - Indonesia
- Sical Logistics Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Rio Tinto Coal - Australia
- SMG Consultants - Indonesia
- Georgia Ports Authority, United States
- Jaiprakash Power Ventures ltd
- Holcim Trading Pte Ltd - Singapore
- Siam City Cement - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Makarim & Taira - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Electricity Authority, New Zealand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhatia International Limited - India
- Globalindo Alam Lestari - Indonesia
- CIMB Investment Bank - Malaysia
- Ministry of Transport, Egypt
- Agrawal Coal Company - India
- MS Steel International - UAE
- Alfred C Toepfer International GmbH - Germany
- Therma Luzon, Inc, Philippines
- Malabar Cements Ltd - India
- Wood Mackenzie - Singapore
- Indogreen Group - Indonesia
- Ministry of Finance - Indonesia
- European Bulk Services B.V. - Netherlands
- Chettinad Cement Corporation Ltd - India
- Meralco Power Generation, Philippines
- Uttam Galva Steels Limited - India
- Siam City Cement PLC, Thailand
- Bukit Baiduri Energy - Indonesia
- The University of Queensland
- London Commodity Brokers - England
- Binh Thuan Hamico - Vietnam
- Baramulti Group, Indonesia
- Price Waterhouse Coopers - Russia
- Ind-Barath Power Infra Limited - India
- Straits Asia Resources Limited - Singapore
- Samtan Co., Ltd - South Korea
- Kobexindo Tractors - Indoneisa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Africa Commodities Group - South Africa
- Maharashtra Electricity Regulatory Commission - India
- Posco Energy - South Korea
- Barasentosa Lestari - Indonesia
- Bhushan Steel Limited - India
- ICICI Bank Limited - India
- Cement Manufacturers Association - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Trasteel International SA, Italy
- Kartika Selabumi Mining - Indonesia
- Mintek Dendrill Indonesia
- Antam Resourcindo - Indonesia
- CNBM International Corporation - China
- Independent Power Producers Association of India
- Kepco SPC Power Corporation, Philippines
- Australian Coal Association
- Thiess Contractors Indonesia
- Savvy Resources Ltd - HongKong
- Maheswari Brothers Coal Limited - India
- Gujarat Sidhee Cement - India
- Directorate Of Revenue Intelligence - India
- Mercuria Energy - Indonesia
- Central Java Power - Indonesia
- GAC Shipping (India) Pvt Ltd
- Kideco Jaya Agung - Indonesia
- Bangladesh Power Developement Board
- The Treasury - Australian Government
- Semirara Mining Corp, Philippines
- Coastal Gujarat Power Limited - India
- Global Business Power Corporation, Philippines
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