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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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Tuesday, 02 June 09
GOVT FINALIZING DMO MECHANISM, REFERENCE PRICE FOR COAL - THE JAKARTA POST
Indonesia, the world's largest thermal coal exporter, is finalizing regulations on a reference price on coal, on a domestic market obligation (DMO) ...
Tuesday, 02 June 09
CHINA OVERSEAS COAL DEMAND TO STAY BUOYANT-MINERS (REUTERS)
China's demand for overseas coal is expected to stay strong in the second half as long as prices of imported coal maintain a discount to domestic p ...
Tuesday, 02 June 09
INDONESIA'S COAL EXPORTS REACH US$ 3.44 BILLION SO FAR THIS YEAR - TRADINGCHARTS
Indonesia`s coal exports in the January-April 2009 period increased by 21.31 per cent to US$3.44 billion compared to US$2.83 billion in the same per ...
Tuesday, 02 June 09
INDONESIA'S BUKIT ASAM AGREES HIGHER COAL PRICES - REUTERS
Indonesian state coal miner PT Bukit Asam Tbk said it has agreed coal prices for two power plants owned by state electricity firm PT Perusahaan List ...
Tuesday, 02 June 09
ADARO MAY RAISE COAL SALES TO CHINA, INDIA PLANTS - THE JAKARTA GLOBE
PT Adaro Energy, the country’s second-largest coal producer, may increase sales of power-plant coal to China and India on signs of a global ec ...
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- Port Waratah Coal Services - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Price Waterhouse Coopers - Russia
- Rio Tinto Coal - Australia
- Bhushan Steel Limited - India
- The Treasury - Australian Government
- Electricity Authority, New Zealand
- Indonesian Coal Mining Association
- PTC India Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Eastern Energy - Thailand
- Antam Resourcindo - Indonesia
- Central Electricity Authority - India
- Power Finance Corporation Ltd., India
- Mercator Lines Limited - India
- MS Steel International - UAE
- GVK Power & Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- Baramulti Group, Indonesia
- Ministry of Transport, Egypt
- Aditya Birla Group - India
- The State Trading Corporation of India Ltd
- Minerals Council of Australia
- Ministry of Finance - Indonesia
- Economic Council, Georgia
- India Bulls Power Limited - India
- Kaltim Prima Coal - Indonesia
- European Bulk Services B.V. - Netherlands
- Oldendorff Carriers - Singapore
- Eastern Coal Council - USA
- San Jose City I Power Corp, Philippines
- Kideco Jaya Agung - Indonesia
- ASAPP Information Group - India
- Binh Thuan Hamico - Vietnam
- IHS Mccloskey Coal Group - USA
- Ministry of Mines - Canada
- Thai Mozambique Logistica
- Electricity Generating Authority of Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PetroVietnam Power Coal Import and Supply Company
- Maheswari Brothers Coal Limited - India
- LBH Netherlands Bv - Netherlands
- Tamil Nadu electricity Board
- Miang Besar Coal Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- PowerSource Philippines DevCo
- Leighton Contractors Pty Ltd - Australia
- Bukit Makmur.PT - Indonesia
- Meralco Power Generation, Philippines
- Commonwealth Bank - Australia
- Larsen & Toubro Limited - India
- SMG Consultants - Indonesia
- Parry Sugars Refinery, India
- GAC Shipping (India) Pvt Ltd
- Karbindo Abesyapradhi - Indoneisa
- Metalloyd Limited - United Kingdom
- Coastal Gujarat Power Limited - India
- Posco Energy - South Korea
- Asmin Koalindo Tuhup - Indonesia
- Independent Power Producers Association of India
- Therma Luzon, Inc, Philippines
- Global Business Power Corporation, Philippines
- Agrawal Coal Company - India
- Gujarat Mineral Development Corp Ltd - India
- Bharathi Cement Corporation - India
- Kartika Selabumi Mining - Indonesia
- Anglo American - United Kingdom
- Straits Asia Resources Limited - Singapore
- Mintek Dendrill Indonesia
- Tata Chemicals Ltd - India
- Indika Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- Uttam Galva Steels Limited - India
- CNBM International Corporation - China
- Semirara Mining Corp, Philippines
- Savvy Resources Ltd - HongKong
- Videocon Industries ltd - India
- Krishnapatnam Port Company Ltd. - India
- Vizag Seaport Private Limited - India
- Riau Bara Harum - Indonesia
- Timah Investasi Mineral - Indoneisa
- Parliament of New Zealand
- Kumho Petrochemical, South Korea
- Manunggal Multi Energi - Indonesia
- Bukit Baiduri Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- Indian Oil Corporation Limited
- Planning Commission, India
- Aboitiz Power Corporation - Philippines
- Makarim & Taira - Indonesia
- CIMB Investment Bank - Malaysia
- Marubeni Corporation - India
- McConnell Dowell - Australia
- London Commodity Brokers - England
- SMC Global Power, Philippines
- Simpson Spence & Young - Indonesia
- Samtan Co., Ltd - South Korea
- International Coal Ventures Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Global Green Power PLC Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Neyveli Lignite Corporation Ltd, - India
- Standard Chartered Bank - UAE
- Sakthi Sugars Limited - India
- Wood Mackenzie - Singapore
- Sindya Power Generating Company Private Ltd
- Holcim Trading Pte Ltd - Singapore
- Malabar Cements Ltd - India
- Iligan Light & Power Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Jaiprakash Power Ventures ltd
- Interocean Group of Companies - India
- Energy Development Corp, Philippines
- Medco Energi Mining Internasional
- Chamber of Mines of South Africa
- Africa Commodities Group - South Africa
- Bangladesh Power Developement Board
- TNB Fuel Sdn Bhd - Malaysia
- Pendopo Energi Batubara - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- South Luzon Thermal Energy Corporation
- Intertek Mineral Services - Indonesia
- Banpu Public Company Limited - Thailand
- Attock Cement Pakistan Limited
- Billiton Holdings Pty Ltd - Australia
- Georgia Ports Authority, United States
- Renaissance Capital - South Africa
- New Zealand Coal & Carbon
- Siam City Cement - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- IEA Clean Coal Centre - UK
- Borneo Indobara - Indonesia
- Salva Resources Pvt Ltd - India
- Coal and Oil Company - UAE
- Bahari Cakrawala Sebuku - Indonesia
- OPG Power Generation Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Sical Logistics Limited - India
- Indogreen Group - Indonesia
- Sarangani Energy Corporation, Philippines
- Cement Manufacturers Association - India
- Lanco Infratech Ltd - India
- Vedanta Resources Plc - India
- VISA Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Orica Mining Services - Indonesia
- PNOC Exploration Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Offshore Bulk Terminal Pte Ltd, Singapore
- Chettinad Cement Corporation Ltd - India
- Deloitte Consulting - India
- Indian Energy Exchange, India
- Ind-Barath Power Infra Limited - India
- Gujarat Sidhee Cement - India
- Xindia Steels Limited - India
- Singapore Mercantile Exchange
- Merrill Lynch Commodities Europe
- White Energy Company Limited
- Kohat Cement Company Ltd. - Pakistan
- Kobexindo Tractors - Indoneisa
- Sree Jayajothi Cements Limited - India
- Globalindo Alam Lestari - Indonesia
- Thiess Contractors Indonesia
- Star Paper Mills Limited - India
- Coalindo Energy - Indonesia
- Trasteel International SA, Italy
- Orica Australia Pty. Ltd.
- Wilmar Investment Holdings
- Altura Mining Limited, Indonesia
- Goldman Sachs - Singapore
- GMR Energy Limited - India
- Indo Tambangraya Megah - Indonesia
- Romanian Commodities Exchange
- Australian Coal Association
- Dalmia Cement Bharat India
- Mercuria Energy - Indonesia
- Barasentosa Lestari - Indonesia
- Heidelberg Cement - Germany
- ICICI Bank Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Essar Steel Hazira Ltd - India
- Bulk Trading Sa - Switzerland
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sojitz Corporation - Japan
- SN Aboitiz Power Inc, Philippines
- Australian Commodity Traders Exchange
- Energy Link Ltd, New Zealand
- Kapuas Tunggal Persada - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ambuja Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Edison Trading Spa - Italy
- Global Coal Blending Company Limited - Australia
- Cigading International Bulk Terminal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- TeaM Sual Corporation - Philippines
- Petron Corporation, Philippines
- Grasim Industreis Ltd - India
- Directorate Of Revenue Intelligence - India
- Madhucon Powers Ltd - India
- Mjunction Services Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Kepco SPC Power Corporation, Philippines
- Carbofer General Trading SA - India
- Siam City Cement PLC, Thailand
- The University of Queensland
- Toyota Tsusho Corporation, Japan
- Karaikal Port Pvt Ltd - India
- Central Java Power - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Bhatia International Limited - India
- Sinarmas Energy and Mining - Indonesia
- Latin American Coal - Colombia
- Bhoruka Overseas - Indonesia
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