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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, 08 June 09
PRIVATE COAL MINERS LIKELY TO LAND COMMERCIAL LICENSE - ECONOMIC TIMES
Economic Times of India reported that, The government may allow commercial coal mining by private companies as it looks to plug the demand-supply ga ...
Monday, 08 June 09
SAN MIGUEL EYES LOCAL MINING VENTURES - PHILIPPINE DAILY INQUIRER
Philippine Daily Inquirer reported that, Diversifying conglomerate San Miguel Corp.is making big plans for Philippine mining, seen as an industry th ...
Monday, 08 June 09
NAPOCOR BUYING COAL FOR PAGBILAO PLANT - PHILIPPINE DAILY INQUIRER
Philippine Daily Inquirer reported that, State-run National Power Corp. plans to buy 390,000 metric tons of steaming coal next month, to supply the ...
Sunday, 07 June 09
SEMIRARA SELLING COAL TO THAILAND - STEELGURU
Business Mirror reported that coal producer Semirara Mining Corporation has successfully entered the Thailand market during the Q1 of the year, help ...
Saturday, 06 June 09
IS THE RECESSION OVER ? - CAPT. REDDY, VISTAAR SHIPPING
COALspot.com (Singapore): Is the recession over, that is what most analysts think and seems so from the Baltic Index rally and firm commodity ...
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- Energy Link Ltd, New Zealand
- Petron Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Ministry of Finance - Indonesia
- The Treasury - Australian Government
- Independent Power Producers Association of India
- PetroVietnam Power Coal Import and Supply Company
- Dalmia Cement Bharat India
- Timah Investasi Mineral - Indoneisa
- Eastern Energy - Thailand
- London Commodity Brokers - England
- Metalloyd Limited - United Kingdom
- McConnell Dowell - Australia
- South Luzon Thermal Energy Corporation
- Maheswari Brothers Coal Limited - India
- Minerals Council of Australia
- Carbofer General Trading SA - India
- Price Waterhouse Coopers - Russia
- Bahari Cakrawala Sebuku - Indonesia
- Trasteel International SA, Italy
- Essar Steel Hazira Ltd - India
- Marubeni Corporation - India
- Rashtriya Ispat Nigam Limited - India
- Gujarat Sidhee Cement - India
- LBH Netherlands Bv - Netherlands
- Mercuria Energy - Indonesia
- Vedanta Resources Plc - India
- GAC Shipping (India) Pvt Ltd
- Chettinad Cement Corporation Ltd - India
- Chamber of Mines of South Africa
- Orica Australia Pty. Ltd.
- Cement Manufacturers Association - India
- Borneo Indobara - Indonesia
- Ministry of Mines - Canada
- Kaltim Prima Coal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Binh Thuan Hamico - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- Krishnapatnam Port Company Ltd. - India
- Global Business Power Corporation, Philippines
- Thiess Contractors Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Singapore Mercantile Exchange
- Electricity Authority, New Zealand
- Siam City Cement - Thailand
- Uttam Galva Steels Limited - India
- Xindia Steels Limited - India
- GMR Energy Limited - India
- Aboitiz Power Corporation - Philippines
- Star Paper Mills Limited - India
- Port Waratah Coal Services - Australia
- Grasim Industreis Ltd - India
- Salva Resources Pvt Ltd - India
- Orica Mining Services - Indonesia
- Thai Mozambique Logistica
- Savvy Resources Ltd - HongKong
- Deloitte Consulting - India
- Commonwealth Bank - Australia
- Kobexindo Tractors - Indoneisa
- Lanco Infratech Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Standard Chartered Bank - UAE
- Sarangani Energy Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Straits Asia Resources Limited - Singapore
- Planning Commission, India
- Australian Coal Association
- Oldendorff Carriers - Singapore
- San Jose City I Power Corp, Philippines
- Central Electricity Authority - India
- Bhoruka Overseas - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Romanian Commodities Exchange
- Medco Energi Mining Internasional
- Alfred C Toepfer International GmbH - Germany
- Anglo American - United Kingdom
- Wood Mackenzie - Singapore
- Vizag Seaport Private Limited - India
- GVK Power & Infra Limited - India
- Bangladesh Power Developement Board
- IEA Clean Coal Centre - UK
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Coalindo Energy - Indonesia
- PNOC Exploration Corporation - Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Samtan Co., Ltd - South Korea
- Bayan Resources Tbk. - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Sical Logistics Limited - India
- Kepco SPC Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- Leighton Contractors Pty Ltd - Australia
- Electricity Generating Authority of Thailand
- Energy Development Corp, Philippines
- The University of Queensland
- Bharathi Cement Corporation - India
- Central Java Power - Indonesia
- SMG Consultants - Indonesia
- Australian Commodity Traders Exchange
- Gujarat Electricity Regulatory Commission - India
- Indo Tambangraya Megah - Indonesia
- Meralco Power Generation, Philippines
- Latin American Coal - Colombia
- Maharashtra Electricity Regulatory Commission - India
- Tamil Nadu electricity Board
- Semirara Mining Corp, Philippines
- Toyota Tsusho Corporation, Japan
- Goldman Sachs - Singapore
- Heidelberg Cement - Germany
- Rio Tinto Coal - Australia
- Simpson Spence & Young - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Merrill Lynch Commodities Europe
- PTC India Limited - India
- Parliament of New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Altura Mining Limited, Indonesia
- Pendopo Energi Batubara - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Mercator Lines Limited - India
- OPG Power Generation Pvt Ltd - India
- Indonesian Coal Mining Association
- European Bulk Services B.V. - Netherlands
- Indogreen Group - Indonesia
- Aditya Birla Group - India
- IHS Mccloskey Coal Group - USA
- The State Trading Corporation of India Ltd
- Malabar Cements Ltd - India
- Indian Oil Corporation Limited
- Ministry of Transport, Egypt
- TeaM Sual Corporation - Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Coastal Gujarat Power Limited - India
- Sakthi Sugars Limited - India
- Kapuas Tunggal Persada - Indonesia
- Indika Energy - Indonesia
- Posco Energy - South Korea
- Bank of Tokyo Mitsubishi UFJ Ltd
- ICICI Bank Limited - India
- Holcim Trading Pte Ltd - Singapore
- Ceylon Electricity Board - Sri Lanka
- Madhucon Powers Ltd - India
- Formosa Plastics Group - Taiwan
- Manunggal Multi Energi - Indonesia
- ASAPP Information Group - India
- CNBM International Corporation - China
- Agrawal Coal Company - India
- Coal and Oil Company - UAE
- Indian Energy Exchange, India
- Sojitz Corporation - Japan
- Eastern Coal Council - USA
- VISA Power Limited - India
- Interocean Group of Companies - India
- Makarim & Taira - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Bukit Makmur.PT - Indonesia
- Globalindo Alam Lestari - Indonesia
- Renaissance Capital - South Africa
- Riau Bara Harum - Indonesia
- Tata Chemicals Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Attock Cement Pakistan Limited
- Karbindo Abesyapradhi - Indoneisa
- Videocon Industries ltd - India
- Sindya Power Generating Company Private Ltd
- Bhushan Steel Limited - India
- Therma Luzon, Inc, Philippines
- Intertek Mineral Services - Indonesia
- CIMB Investment Bank - Malaysia
- Cigading International Bulk Terminal - Indonesia
- Banpu Public Company Limited - Thailand
- Antam Resourcindo - Indonesia
- Georgia Ports Authority, United States
- Asmin Koalindo Tuhup - Indonesia
- Parry Sugars Refinery, India
- Jindal Steel & Power Ltd - India
- India Bulls Power Limited - India
- Siam City Cement PLC, Thailand
- Mintek Dendrill Indonesia
- Economic Council, Georgia
- Wilmar Investment Holdings
- New Zealand Coal & Carbon
- Sree Jayajothi Cements Limited - India
- Ambuja Cements Ltd - India
- Kideco Jaya Agung - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PowerSource Philippines DevCo
- Directorate Of Revenue Intelligence - India
- Africa Commodities Group - South Africa
- Meenaskhi Energy Private Limited - India
- White Energy Company Limited
- Edison Trading Spa - Italy
- Neyveli Lignite Corporation Ltd, - India
- International Coal Ventures Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Bhatia International Limited - India
- Jaiprakash Power Ventures ltd
- MS Steel International - UAE
- Karaikal Port Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Power Finance Corporation Ltd., India
- SMC Global Power, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Mjunction Services Limited - India
- Barasentosa Lestari - Indonesia
- Larsen & Toubro Limited - India
- Baramulti Group, Indonesia
- Bulk Trading Sa - Switzerland
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