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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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Wednesday, 03 June 09
POWER DEMAND TO BOOST INDIA COAL IMPORTS DURING MONSOON - STEELGURU
Reuters quoted Indian coal importers said that strong demand for power in India is likely to keep coal imports at the maximum level possible in the ...
Wednesday, 03 June 09
NAPOCOR EXTENDS COAL TENDER FOR SOLE BIDDER - ABS CBNNEWS
National Power Corp. (Napocor), the top Philippine electricity producer, has given the lone bidder at a tender for 195,000 tons of coal more time to ...
Wednesday, 03 June 09
NEWCASTLE COAL EXPORTS JUMP 20 PERCENT; SHIP QUEUE LENGTHENS - BLOOMBERG
Coal exports from Australia’s Newcastle, the world’s biggest export harbor for the fuel, jumped 20 percent last week while the number of ...
Wednesday, 03 June 09
IPL-2 OVER, INDIAN COAL LEAGUE BEGINS IN SOUTH AFRICA - ECONOMICTIME
Steel, cement and power companies, which have traditionally relied on cheap Indonesian coal to fuel their factories, are rushing to buy South Africa ...
Wednesday, 03 June 09
BUILDING A ROAD TO LINK 3 GIANTS - THE JAKARTA GLOBE
Madhu Koneru is building a road to the future that will bring together the financial heft of the Middle East, the technological know-how of a rising ...
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- Oldendorff Carriers - Singapore
- Cement Manufacturers Association - India
- South Luzon Thermal Energy Corporation
- Coal and Oil Company - UAE
- Tata Chemicals Ltd - India
- Parliament of New Zealand
- SN Aboitiz Power Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Riau Bara Harum - Indonesia
- Parry Sugars Refinery, India
- Samtan Co., Ltd - South Korea
- Sojitz Corporation - Japan
- Thai Mozambique Logistica
- Meralco Power Generation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Siam City Cement PLC, Thailand
- Sical Logistics Limited - India
- Borneo Indobara - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Port Waratah Coal Services - Australia
- GAC Shipping (India) Pvt Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Manunggal Multi Energi - Indonesia
- Bukit Makmur.PT - Indonesia
- Mercuria Energy - Indonesia
- SMG Consultants - Indonesia
- Marubeni Corporation - India
- The State Trading Corporation of India Ltd
- Vedanta Resources Plc - India
- Karaikal Port Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Gujarat Electricity Regulatory Commission - India
- Sakthi Sugars Limited - India
- PowerSource Philippines DevCo
- Electricity Generating Authority of Thailand
- Gujarat Mineral Development Corp Ltd - India
- Wilmar Investment Holdings
- MS Steel International - UAE
- Baramulti Group, Indonesia
- Ind-Barath Power Infra Limited - India
- Bukit Baiduri Energy - Indonesia
- Anglo American - United Kingdom
- Intertek Mineral Services - Indonesia
- ICICI Bank Limited - India
- Kepco SPC Power Corporation, Philippines
- Edison Trading Spa - Italy
- Kohat Cement Company Ltd. - Pakistan
- IEA Clean Coal Centre - UK
- Globalindo Alam Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- Thiess Contractors Indonesia
- Rio Tinto Coal - Australia
- Neyveli Lignite Corporation Ltd, - India
- Rashtriya Ispat Nigam Limited - India
- Commonwealth Bank - Australia
- SMC Global Power, Philippines
- Miang Besar Coal Terminal - Indonesia
- Petron Corporation, Philippines
- Tamil Nadu electricity Board
- Ministry of Finance - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Aboitiz Power Corporation - Philippines
- Therma Luzon, Inc, Philippines
- GMR Energy Limited - India
- Minerals Council of Australia
- Merrill Lynch Commodities Europe
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- San Jose City I Power Corp, Philippines
- Renaissance Capital - South Africa
- Kartika Selabumi Mining - Indonesia
- Indonesian Coal Mining Association
- Kapuas Tunggal Persada - Indonesia
- Bharathi Cement Corporation - India
- Bayan Resources Tbk. - Indonesia
- Wood Mackenzie - Singapore
- Semirara Mining and Power Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Trasteel International SA, Italy
- Chettinad Cement Corporation Ltd - India
- Mintek Dendrill Indonesia
- Ministry of Mines - Canada
- Barasentosa Lestari - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Coalindo Energy - Indonesia
- Attock Cement Pakistan Limited
- Pipit Mutiara Jaya. PT, Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Binh Thuan Hamico - Vietnam
- Holcim Trading Pte Ltd - Singapore
- GVK Power & Infra Limited - India
- Agrawal Coal Company - India
- London Commodity Brokers - England
- Indian Oil Corporation Limited
- Eastern Energy - Thailand
- Romanian Commodities Exchange
- Kobexindo Tractors - Indoneisa
- Leighton Contractors Pty Ltd - Australia
- Ambuja Cements Ltd - India
- Sarangani Energy Corporation, Philippines
- Videocon Industries ltd - India
- India Bulls Power Limited - India
- Chamber of Mines of South Africa
- Goldman Sachs - Singapore
- Electricity Authority, New Zealand
- Power Finance Corporation Ltd., India
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- PTC India Limited - India
- TeaM Sual Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- Deloitte Consulting - India
- Central Java Power - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Banpu Public Company Limited - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Australian Commodity Traders Exchange
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- Global Green Power PLC Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- Altura Mining Limited, Indonesia
- IHS Mccloskey Coal Group - USA
- Orica Australia Pty. Ltd.
- Star Paper Mills Limited - India
- Kideco Jaya Agung - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Africa Commodities Group - South Africa
- Dalmia Cement Bharat India
- International Coal Ventures Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Indogreen Group - Indonesia
- Lanco Infratech Ltd - India
- Georgia Ports Authority, United States
- European Bulk Services B.V. - Netherlands
- Central Electricity Authority - India
- ASAPP Information Group - India
- Medco Energi Mining Internasional
- Iligan Light & Power Inc, Philippines
- Latin American Coal - Colombia
- McConnell Dowell - Australia
- LBH Netherlands Bv - Netherlands
- Economic Council, Georgia
- Posco Energy - South Korea
- Jaiprakash Power Ventures ltd
- Billiton Holdings Pty Ltd - Australia
- Bhoruka Overseas - Indonesia
- Essar Steel Hazira Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- Indika Energy - Indonesia
- Eastern Coal Council - USA
- Energy Link Ltd, New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Jorong Barutama Greston.PT - Indonesia
- CIMB Investment Bank - Malaysia
- New Zealand Coal & Carbon
- Orica Mining Services - Indonesia
- Indian Energy Exchange, India
- Grasim Industreis Ltd - India
- Bulk Trading Sa - Switzerland
- Bhatia International Limited - India
- Singapore Mercantile Exchange
- The Treasury - Australian Government
- Sindya Power Generating Company Private Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Formosa Plastics Group - Taiwan
- Karbindo Abesyapradhi - Indoneisa
- Cigading International Bulk Terminal - Indonesia
- Savvy Resources Ltd - HongKong
- Pendopo Energi Batubara - Indonesia
- Metalloyd Limited - United Kingdom
- Vizag Seaport Private Limited - India
- Xindia Steels Limited - India
- Malabar Cements Ltd - India
- Uttam Galva Steels Limited - India
- Mercator Lines Limited - India
- Australian Coal Association
- Heidelberg Cement - Germany
- Mjunction Services Limited - India
- Antam Resourcindo - Indonesia
- Salva Resources Pvt Ltd - India
- VISA Power Limited - India
- Gujarat Sidhee Cement - India
- The University of Queensland
- Madhucon Powers Ltd - India
- Interocean Group of Companies - India
- Siam City Cement - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
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- Vijayanagar Sugar Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
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- Bangladesh Power Developement Board
- Larsen & Toubro Limited - India
- Simpson Spence & Young - Indonesia
- Toyota Tsusho Corporation, Japan
- Coastal Gujarat Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Independent Power Producers Association of India
- White Energy Company Limited
- CNBM International Corporation - China
- Ministry of Transport, Egypt
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- Straits Asia Resources Limited - Singapore
- Energy Development Corp, Philippines
- Jindal Steel & Power Ltd - India
- Standard Chartered Bank - UAE
- Price Waterhouse Coopers - Russia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Directorate General of MIneral and Coal - Indonesia
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- Indo Tambangraya Megah - Indonesia
- Bhushan Steel Limited - India
- Maheswari Brothers Coal Limited - India
- Planning Commission, India
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