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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, 06 June 09
COAL PRICE HIT RECORD ON STRONG CHINA DEMAND - INVESTMENT WATCH
Investment watch reported that, “Coal price hit a new high of over $72 a tonne at Australia’s Newcastle Port, a benchmark for Asia, spur ...
Friday, 05 June 09
CEMENT INDUSTRY NEEDS POLICY ON FLY ASH
H.M. Bangur, President of Cement Manufacturers' Association, on the objectives and economic impact of the proposed national policy on utilisation o ...
Thursday, 04 June 09
PAKISTAN TO IMPORT MORE COAL FROM INDONESIA - SEATRADE
COALspot.com (Pakistan): Richards bay to Pakistan sea freight has touched US$ 20.00 for 40,000/10 pct steam size in June 2009. South African c ...
Thursday, 04 June 09
CHINA'S SHANXI PROVINCE CONSIDERS COAL FUTURES BOURSE - MINE WEB
Mine Web reported that, China hopes to establish a coal futures exchange to obtain more rights on international pricing.
China's largest coal pr ...
Thursday, 04 June 09
CHINA QINHUANGDAO COAL STOCK JUMPS BY 36.2% MOM - STEELGURU
SteelGuru reported that, Sources indicated that, coal stock at Qinhuangdao port, China's major coal port has reached 4.88 million tonnes increasing ...
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- Mintek Dendrill Indonesia
- Meralco Power Generation, Philippines
- Sakthi Sugars Limited - India
- Miang Besar Coal Terminal - Indonesia
- Altura Mining Limited, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- MS Steel International - UAE
- Intertek Mineral Services - Indonesia
- Bhatia International Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Energy Link Ltd, New Zealand
- Grasim Industreis Ltd - India
- SMG Consultants - Indonesia
- Tata Chemicals Ltd - India
- Sindya Power Generating Company Private Ltd
- Timah Investasi Mineral - Indoneisa
- Bhushan Steel Limited - India
- Trasteel International SA, Italy
- Alfred C Toepfer International GmbH - Germany
- The Treasury - Australian Government
- Globalindo Alam Lestari - Indonesia
- Ambuja Cements Ltd - India
- ASAPP Information Group - India
- Barasentosa Lestari - Indonesia
- Deloitte Consulting - India
- Aditya Birla Group - India
- Petron Corporation, Philippines
- Indian Oil Corporation Limited
- Cement Manufacturers Association - India
- Oldendorff Carriers - Singapore
- Asmin Koalindo Tuhup - Indonesia
- CNBM International Corporation - China
- Chamber of Mines of South Africa
- Holcim Trading Pte Ltd - Singapore
- White Energy Company Limited
- Indian Energy Exchange, India
- International Coal Ventures Pvt Ltd - India
- Energy Development Corp, Philippines
- Antam Resourcindo - Indonesia
- Sarangani Energy Corporation, Philippines
- Borneo Indobara - Indonesia
- Heidelberg Cement - Germany
- Power Finance Corporation Ltd., India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Kapuas Tunggal Persada - Indonesia
- Madhucon Powers Ltd - India
- GAC Shipping (India) Pvt Ltd
- Savvy Resources Ltd - HongKong
- Neyveli Lignite Corporation Ltd, - India
- IEA Clean Coal Centre - UK
- South Luzon Thermal Energy Corporation
- Central Electricity Authority - India
- Coalindo Energy - Indonesia
- Riau Bara Harum - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Economic Council, Georgia
- Directorate Of Revenue Intelligence - India
- Dalmia Cement Bharat India
- SMC Global Power, Philippines
- CIMB Investment Bank - Malaysia
- Rio Tinto Coal - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Krishnapatnam Port Company Ltd. - India
- Coastal Gujarat Power Limited - India
- Ministry of Mines - Canada
- Goldman Sachs - Singapore
- Makarim & Taira - Indonesia
- Kideco Jaya Agung - Indonesia
- Price Waterhouse Coopers - Russia
- Electricity Generating Authority of Thailand
- Singapore Mercantile Exchange
- Renaissance Capital - South Africa
- Agrawal Coal Company - India
- Wood Mackenzie - Singapore
- Sree Jayajothi Cements Limited - India
- Indika Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- Straits Asia Resources Limited - Singapore
- Xindia Steels Limited - India
- Metalloyd Limited - United Kingdom
- Thai Mozambique Logistica
- Chettinad Cement Corporation Ltd - India
- Orica Mining Services - Indonesia
- Iligan Light & Power Inc, Philippines
- Formosa Plastics Group - Taiwan
- Billiton Holdings Pty Ltd - Australia
- Gujarat Mineral Development Corp Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Independent Power Producers Association of India
- India Bulls Power Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Posco Energy - South Korea
- Kepco SPC Power Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Attock Cement Pakistan Limited
- Australian Coal Association
- Salva Resources Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Bulk Trading Sa - Switzerland
- VISA Power Limited - India
- Commonwealth Bank - Australia
- Samtan Co., Ltd - South Korea
- Siam City Cement - Thailand
- GVK Power & Infra Limited - India
- Semirara Mining and Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Parliament of New Zealand
- Essar Steel Hazira Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Toyota Tsusho Corporation, Japan
- Coal and Oil Company - UAE
- Jorong Barutama Greston.PT - Indonesia
- Therma Luzon, Inc, Philippines
- Standard Chartered Bank - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- LBH Netherlands Bv - Netherlands
- Binh Thuan Hamico - Vietnam
- Bukit Makmur.PT - Indonesia
- Africa Commodities Group - South Africa
- TNB Fuel Sdn Bhd - Malaysia
- Semirara Mining Corp, Philippines
- SN Aboitiz Power Inc, Philippines
- Jindal Steel & Power Ltd - India
- Global Coal Blending Company Limited - Australia
- The State Trading Corporation of India Ltd
- Bangladesh Power Developement Board
- Malabar Cements Ltd - India
- Minerals Council of Australia
- The University of Queensland
- Lanco Infratech Ltd - India
- IHS Mccloskey Coal Group - USA
- Vizag Seaport Private Limited - India
- Ministry of Transport, Egypt
- Edison Trading Spa - Italy
- Tamil Nadu electricity Board
- Global Green Power PLC Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Indo Tambangraya Megah - Indonesia
- GMR Energy Limited - India
- Ind-Barath Power Infra Limited - India
- Indogreen Group - Indonesia
- Port Waratah Coal Services - Australia
- Sical Logistics Limited - India
- Planning Commission, India
- Mercator Lines Limited - India
- Larsen & Toubro Limited - India
- Karaikal Port Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Latin American Coal - Colombia
- Leighton Contractors Pty Ltd - Australia
- Cigading International Bulk Terminal - Indonesia
- Jaiprakash Power Ventures ltd
- PTC India Limited - India
- Vedanta Resources Plc - India
- Carbofer General Trading SA - India
- Ministry of Finance - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Mjunction Services Limited - India
- Orica Australia Pty. Ltd.
- Kartika Selabumi Mining - Indonesia
- Australian Commodity Traders Exchange
- Karbindo Abesyapradhi - Indoneisa
- AsiaOL BioFuels Corp., Philippines
- Eastern Coal Council - USA
- Rashtriya Ispat Nigam Limited - India
- Merrill Lynch Commodities Europe
- GN Power Mariveles Coal Plant, Philippines
- Electricity Authority, New Zealand
- Global Business Power Corporation, Philippines
- Indonesian Coal Mining Association
- Medco Energi Mining Internasional
- Star Paper Mills Limited - India
- Kumho Petrochemical, South Korea
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Sidhee Cement - India
- Bharathi Cement Corporation - India
- Simpson Spence & Young - Indonesia
- Marubeni Corporation - India
- Interocean Group of Companies - India
- London Commodity Brokers - England
- Romanian Commodities Exchange
- Anglo American - United Kingdom
- Wilmar Investment Holdings
- OPG Power Generation Pvt Ltd - India
- PowerSource Philippines DevCo
- Bhoruka Overseas - Indonesia
- Uttam Galva Steels Limited - India
- Bukit Baiduri Energy - Indonesia
- Banpu Public Company Limited - Thailand
- ICICI Bank Limited - India
- Central Java Power - Indonesia
- Georgia Ports Authority, United States
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Baramulti Group, Indonesia
- Manunggal Multi Energi - Indonesia
- Meenaskhi Energy Private Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Videocon Industries ltd - India
- Bayan Resources Tbk. - Indonesia
- Parry Sugars Refinery, India
- Kohat Cement Company Ltd. - Pakistan
- Sojitz Corporation - Japan
- Mercuria Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Thiess Contractors Indonesia
- Aboitiz Power Corporation - Philippines
- TeaM Sual Corporation - Philippines
- San Jose City I Power Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- New Zealand Coal & Carbon
- Siam City Cement PLC, Thailand
- Eastern Energy - Thailand
- Maharashtra Electricity Regulatory Commission - India
- McConnell Dowell - Australia
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