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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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Thursday, 04 June 09
ASIA COAL - PRICES RISE TO 31/2 MTH HIGH ON OIL, ECONOMY - INTERACTIVE INVESTOR
Interactive Investor reported that, Prices of power-station coal from Australia, a benchmark for Asia, rose to a three-and-a-half-month high of over ...
Thursday, 04 June 09
PTT: RESTRUCTURING BUSINESS, DIVERSIFYING INTO COAL - EASYBOURSE
Thailand's largest energy conglomerate, PTT PCL (PTT.TH), will diversify into coal as part of its business restructuring, Senior Executive Vice Pre ...
Thursday, 04 June 09
ADARO SECURES THREE NEW CONTRACTS, SAYS OUTLOOK POSITIVE - THE JAKARTA POST
Publicly listed PT Adaro Energy, the country's second largest coal miner, announced Wednesday it had secured three new coal contracts from buyers f ...
Wednesday, 03 June 09
XSTRATA, KOMIPO AGREE SOME '09 COAL TONNAGE AT $63/T- REUTERS
South Korean utility Korea Midland Power Co (KOMIPO) has agreed to buy part of its 2009 term contract tonnage from Xstrata's coal unit at about $63 ...
Wednesday, 03 June 09
KOSEP SEEKS UP TO 3 MLN TONNES OF COAL - REUTERS
Korea South-East Power Co Ltd (KOSEP) has issued four tenders seeking a total of 3 million tonnes of coal for delivery between 2009 to 2011, a tende ...
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- Maharashtra Electricity Regulatory Commission - India
- Manunggal Multi Energi - Indonesia
- Ind-Barath Power Infra Limited - India
- Semirara Mining and Power Corporation, Philippines
- New Zealand Coal & Carbon
- Salva Resources Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Therma Luzon, Inc, Philippines
- Simpson Spence & Young - Indonesia
- White Energy Company Limited
- Kartika Selabumi Mining - Indonesia
- VISA Power Limited - India
- Barasentosa Lestari - Indonesia
- Alfred C Toepfer International GmbH - Germany
- McConnell Dowell - Australia
- The Treasury - Australian Government
- Star Paper Mills Limited - India
- Merrill Lynch Commodities Europe
- Kumho Petrochemical, South Korea
- Makarim & Taira - Indonesia
- Central Java Power - Indonesia
- Siam City Cement PLC, Thailand
- Rio Tinto Coal - Australia
- SMC Global Power, Philippines
- Siam City Cement - Thailand
- Aditya Birla Group - India
- Mintek Dendrill Indonesia
- Eastern Coal Council - USA
- Leighton Contractors Pty Ltd - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Carbofer General Trading SA - India
- Malabar Cements Ltd - India
- Pendopo Energi Batubara - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Sinarmas Energy and Mining - Indonesia
- Coalindo Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- Indogreen Group - Indonesia
- IEA Clean Coal Centre - UK
- Bukit Makmur.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- Port Waratah Coal Services - Australia
- Altura Mining Limited, Indonesia
- India Bulls Power Limited - India
- Deloitte Consulting - India
- Bahari Cakrawala Sebuku - Indonesia
- Bharathi Cement Corporation - India
- Parry Sugars Refinery, India
- Directorate Of Revenue Intelligence - India
- AsiaOL BioFuels Corp., Philippines
- CNBM International Corporation - China
- Gujarat Sidhee Cement - India
- Ministry of Mines - Canada
- CIMB Investment Bank - Malaysia
- PTC India Limited - India
- Mjunction Services Limited - India
- Aboitiz Power Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Directorate General of MIneral and Coal - Indonesia
- SN Aboitiz Power Inc, Philippines
- Meenaskhi Energy Private Limited - India
- Minerals Council of Australia
- IHS Mccloskey Coal Group - USA
- Metalloyd Limited - United Kingdom
- Thiess Contractors Indonesia
- ASAPP Information Group - India
- Petrochimia International Co. Ltd.- Taiwan
- Independent Power Producers Association of India
- Bhushan Steel Limited - India
- Miang Besar Coal Terminal - Indonesia
- Indian Energy Exchange, India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Toyota Tsusho Corporation, Japan
- Banpu Public Company Limited - Thailand
- GN Power Mariveles Coal Plant, Philippines
- Bhoruka Overseas - Indonesia
- Renaissance Capital - South Africa
- Kohat Cement Company Ltd. - Pakistan
- PetroVietnam Power Coal Import and Supply Company
- Energy Link Ltd, New Zealand
- Oldendorff Carriers - Singapore
- San Jose City I Power Corp, Philippines
- Sakthi Sugars Limited - India
- Price Waterhouse Coopers - Russia
- MS Steel International - UAE
- Sree Jayajothi Cements Limited - India
- Timah Investasi Mineral - Indoneisa
- Meralco Power Generation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Ambuja Cements Ltd - India
- Commonwealth Bank - Australia
- Ministry of Finance - Indonesia
- The State Trading Corporation of India Ltd
- Samtan Co., Ltd - South Korea
- Maheswari Brothers Coal Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Intertek Mineral Services - Indonesia
- Wilmar Investment Holdings
- Uttam Galva Steels Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- South Luzon Thermal Energy Corporation
- Tata Chemicals Ltd - India
- Trasteel International SA, Italy
- Romanian Commodities Exchange
- Chettinad Cement Corporation Ltd - India
- Planning Commission, India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Attock Cement Pakistan Limited
- Madhucon Powers Ltd - India
- Indika Energy - Indonesia
- Orica Australia Pty. Ltd.
- Videocon Industries ltd - India
- Global Business Power Corporation, Philippines
- London Commodity Brokers - England
- Sical Logistics Limited - India
- Latin American Coal - Colombia
- Savvy Resources Ltd - HongKong
- Larsen & Toubro Limited - India
- Anglo American - United Kingdom
- Indian Oil Corporation Limited
- Binh Thuan Hamico - Vietnam
- Bukit Asam (Persero) Tbk - Indonesia
- GVK Power & Infra Limited - India
- Cigading International Bulk Terminal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Cement Manufacturers Association - India
- Edison Trading Spa - Italy
- PowerSource Philippines DevCo
- GAC Shipping (India) Pvt Ltd
- Sindya Power Generating Company Private Ltd
- Central Electricity Authority - India
- Jaiprakash Power Ventures ltd
- Kaltim Prima Coal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Eastern Energy - Thailand
- Marubeni Corporation - India
- Billiton Holdings Pty Ltd - Australia
- Goldman Sachs - Singapore
- Sarangani Energy Corporation, Philippines
- Xindia Steels Limited - India
- Sojitz Corporation - Japan
- Bulk Trading Sa - Switzerland
- Medco Energi Mining Internasional
- Economic Council, Georgia
- Iligan Light & Power Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Parliament of New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Essar Steel Hazira Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Interocean Group of Companies - India
- Power Finance Corporation Ltd., India
- Gujarat Mineral Development Corp Ltd - India
- European Bulk Services B.V. - Netherlands
- Tamil Nadu electricity Board
- Georgia Ports Authority, United States
- Kapuas Tunggal Persada - Indonesia
- Grasim Industreis Ltd - India
- Karaikal Port Pvt Ltd - India
- Semirara Mining Corp, Philippines
- LBH Netherlands Bv - Netherlands
- ICICI Bank Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Vedanta Resources Plc - India
- Antam Resourcindo - Indonesia
- Energy Development Corp, Philippines
- SMG Consultants - Indonesia
- Australian Coal Association
- Thai Mozambique Logistica
- Petron Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Coal and Oil Company - UAE
- Jindal Steel & Power Ltd - India
- Standard Chartered Bank - UAE
- Gujarat Electricity Regulatory Commission - India
- Bangladesh Power Developement Board
- Electricity Generating Authority of Thailand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- Bhatia International Limited - India
- Wood Mackenzie - Singapore
- Vizag Seaport Private Limited - India
- Dalmia Cement Bharat India
- Orica Mining Services - Indonesia
- Global Coal Blending Company Limited - Australia
- Kepco SPC Power Corporation, Philippines
- Indonesian Coal Mining Association
- Posco Energy - South Korea
- Africa Commodities Group - South Africa
- Borneo Indobara - Indonesia
- Ministry of Transport, Egypt
- TeaM Sual Corporation - Philippines
- Singapore Mercantile Exchange
- Baramulti Group, Indonesia
- Lanco Infratech Ltd - India
- Kobexindo Tractors - Indoneisa
- Heidelberg Cement - Germany
- Australian Commodity Traders Exchange
- OPG Power Generation Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- GMR Energy Limited - India
- Chamber of Mines of South Africa
- Straits Asia Resources Limited - Singapore
- Coastal Gujarat Power Limited - India
- Electricity Authority, New Zealand
- The University of Queensland
- Jorong Barutama Greston.PT - Indonesia
- Mercator Lines Limited - India
- Global Green Power PLC Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Formosa Plastics Group - Taiwan
- Mercuria Energy - Indonesia
- Agrawal Coal Company - India
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