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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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Friday, 29 May 09
INDONESIA PLANS "CLEARING HOUSE" FOR COAL - ALIBABA
Alibaba reported that, Indonesia, the world's biggest thermal coal exporter, plans to set up an agency similar to a clearing house to trade stocks ...
Friday, 29 May 09
INDIKA EYES MORE ACQUISITIONS - THE JAKARTA POST
Having nearly completed the acquisition of engineering and mining company PT Petrosea, energy company PT Indika Energy is preparing for more acquisi ...
Friday, 29 May 09
PTBA PAYS DIVIDENDS OF RP 371.5 A SHARE - THE JAKARTA POST
The annual shareholders' meeting of state-controlled coal producer PT Tambang Batubara Bukit Asam (PTBA) approved on Thursday the allocation of 50 ...
Thursday, 28 May 09
INDIANS CHOOSE SOUTH AFRICA COAL OVER INDONESIAN - MINEWEB (REUTERS)
South African cargoes are about $4 a tonne cheaper than Indonesian coal, as a result India now prefers South Africa .
Indian imports of South Afr ...
Wednesday, 27 May 09
NEWCASTLE PORT'S WEEKLY COAL EXPORTS INCREASE 3.6% - BLOOMBERG
Coal shipments from Australia’s Newcastle port, the world’s biggest export harbor for the fuel, rose 3.6 percent last week while the num ...
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- MS Steel International - UAE
- Chettinad Cement Corporation Ltd - India
- The State Trading Corporation of India Ltd
- Renaissance Capital - South Africa
- White Energy Company Limited
- Samtan Co., Ltd - South Korea
- CNBM International Corporation - China
- Directorate Of Revenue Intelligence - India
- Toyota Tsusho Corporation, Japan
- Kaltim Prima Coal - Indonesia
- Antam Resourcindo - Indonesia
- McConnell Dowell - Australia
- Indian Oil Corporation Limited
- Semirara Mining and Power Corporation, Philippines
- Lanco Infratech Ltd - India
- Global Business Power Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Kumho Petrochemical, South Korea
- Aditya Birla Group - India
- Simpson Spence & Young - Indonesia
- Bukit Makmur.PT - Indonesia
- Trasteel International SA, Italy
- Vedanta Resources Plc - India
- Barasentosa Lestari - Indonesia
- Energy Development Corp, Philippines
- Sree Jayajothi Cements Limited - India
- ICICI Bank Limited - India
- Makarim & Taira - Indonesia
- Economic Council, Georgia
- Dalmia Cement Bharat India
- Aboitiz Power Corporation - Philippines
- San Jose City I Power Corp, Philippines
- Parry Sugars Refinery, India
- Cigading International Bulk Terminal - Indonesia
- Minerals Council of Australia
- Gujarat Electricity Regulatory Commission - India
- Wilmar Investment Holdings
- Coal and Oil Company - UAE
- Central Java Power - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Intertek Mineral Services - Indonesia
- Posco Energy - South Korea
- LBH Netherlands Bv - Netherlands
- Ministry of Finance - Indonesia
- Africa Commodities Group - South Africa
- Chamber of Mines of South Africa
- Pipit Mutiara Jaya. PT, Indonesia
- Meralco Power Generation, Philippines
- Bayan Resources Tbk. - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- The University of Queensland
- Energy Link Ltd, New Zealand
- Anglo American - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- Edison Trading Spa - Italy
- Bukit Baiduri Energy - Indonesia
- ASAPP Information Group - India
- India Bulls Power Limited - India
- Electricity Authority, New Zealand
- Eastern Energy - Thailand
- Larsen & Toubro Limited - India
- Price Waterhouse Coopers - Russia
- Sojitz Corporation - Japan
- Marubeni Corporation - India
- Indika Energy - Indonesia
- Orica Mining Services - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Tamil Nadu electricity Board
- Meenaskhi Energy Private Limited - India
- Asmin Koalindo Tuhup - Indonesia
- GMR Energy Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Interocean Group of Companies - India
- Manunggal Multi Energi - Indonesia
- IEA Clean Coal Centre - UK
- Ceylon Electricity Board - Sri Lanka
- VISA Power Limited - India
- Deloitte Consulting - India
- Latin American Coal - Colombia
- Baramulti Group, Indonesia
- Borneo Indobara - Indonesia
- Romanian Commodities Exchange
- Salva Resources Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Electricity Generating Authority of Thailand
- Semirara Mining Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- Petron Corporation, Philippines
- Ministry of Mines - Canada
- Neyveli Lignite Corporation Ltd, - India
- Cement Manufacturers Association - India
- Kalimantan Lumbung Energi - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- European Bulk Services B.V. - Netherlands
- Pendopo Energi Batubara - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- New Zealand Coal & Carbon
- Mintek Dendrill Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Georgia Ports Authority, United States
- Alfred C Toepfer International GmbH - Germany
- SMG Consultants - Indonesia
- Mjunction Services Limited - India
- TeaM Sual Corporation - Philippines
- Star Paper Mills Limited - India
- Siam City Cement PLC, Thailand
- International Coal Ventures Pvt Ltd - India
- Carbofer General Trading SA - India
- Coastal Gujarat Power Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- Oldendorff Carriers - Singapore
- Thiess Contractors Indonesia
- Karaikal Port Pvt Ltd - India
- Bhatia International Limited - India
- Sakthi Sugars Limited - India
- Rashtriya Ispat Nigam Limited - India
- Altura Mining Limited, Indonesia
- Australian Coal Association
- Commonwealth Bank - Australia
- Vizag Seaport Private Limited - India
- Riau Bara Harum - Indonesia
- PowerSource Philippines DevCo
- IHS Mccloskey Coal Group - USA
- Mercuria Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement - Thailand
- Uttam Galva Steels Limited - India
- Sindya Power Generating Company Private Ltd
- Orica Australia Pty. Ltd.
- Indo Tambangraya Megah - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Therma Luzon, Inc, Philippines
- Bhushan Steel Limited - India
- Bulk Trading Sa - Switzerland
- Agrawal Coal Company - India
- Bhoruka Overseas - Indonesia
- Planning Commission, India
- Kepco SPC Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- SMC Global Power, Philippines
- CIMB Investment Bank - Malaysia
- Mercator Lines Limited - India
- Tata Chemicals Ltd - India
- Parliament of New Zealand
- Indogreen Group - Indonesia
- Timah Investasi Mineral - Indoneisa
- PNOC Exploration Corporation - Philippines
- Bharathi Cement Corporation - India
- Eastern Coal Council - USA
- GVK Power & Infra Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Jindal Steel & Power Ltd - India
- Ambuja Cements Ltd - India
- PTC India Limited - India
- Videocon Industries ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Globalindo Alam Lestari - Indonesia
- Singapore Mercantile Exchange
- Bangladesh Power Developement Board
- Jaiprakash Power Ventures ltd
- Banpu Public Company Limited - Thailand
- Holcim Trading Pte Ltd - Singapore
- Wood Mackenzie - Singapore
- Kideco Jaya Agung - Indonesia
- Indian Energy Exchange, India
- Sinarmas Energy and Mining - Indonesia
- Goldman Sachs - Singapore
- Ind-Barath Power Infra Limited - India
- The Treasury - Australian Government
- Global Coal Blending Company Limited - Australia
- Miang Besar Coal Terminal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Coalindo Energy - Indonesia
- Savvy Resources Ltd - HongKong
- OPG Power Generation Pvt Ltd - India
- Rio Tinto Coal - Australia
- Gujarat Sidhee Cement - India
- Independent Power Producers Association of India
- London Commodity Brokers - England
- Formosa Plastics Group - Taiwan
- Standard Chartered Bank - UAE
- Essar Steel Hazira Ltd - India
- Port Waratah Coal Services - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Maheswari Brothers Coal Limited - India
- Ministry of Transport, Egypt
- Metalloyd Limited - United Kingdom
- Billiton Holdings Pty Ltd - Australia
- Thai Mozambique Logistica
- Central Electricity Authority - India
- Merrill Lynch Commodities Europe
- Xindia Steels Limited - India
- Binh Thuan Hamico - Vietnam
- Kapuas Tunggal Persada - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bahari Cakrawala Sebuku - Indonesia
- Medco Energi Mining Internasional
- Grasim Industreis Ltd - India
- Heidelberg Cement - Germany
- Indonesian Coal Mining Association
- Malabar Cements Ltd - India
- South Luzon Thermal Energy Corporation
- Global Green Power PLC Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sical Logistics Limited - India
- Straits Asia Resources Limited - Singapore
- Madhucon Powers Ltd - India
- Australian Commodity Traders Exchange
- Attock Cement Pakistan Limited
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