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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, 27 May 09
EUROPEAN COAL PRICES FOR 2010 SETTLEMENT DROP TO 11-DAY LOW - BLOOMBERG
Benchmark European coal derivatives declined to an 11-day low as oil prices slumped.
Coal for delivery to Amsterdam, Rotterdam or Antwerp with se ...
Tuesday, 26 May 09
NEW MINING PERMITS TO BE OBTAINABLE WITHIN TWO WEEKS' TIME - MAJALAHTAMBANG
The Indonesian government is currently formulating a procedure for companies willing to obtain mining permits (IUP in its Indonesian abbreviation). ...
Tuesday, 26 May 09
KADIN CALLS FOR BIGGER RECOGNITION OF MINING SECTOR - MAJALAHTAMBANG
The Indonesian Chamber of Commerce and Industry (KADIN Indonesia) had called other sectors, particularly the forestry and the land administration se ...
Tuesday, 26 May 09
TUTICORIN PORT TO INVEST RS 700CR FOR COAL HANDLING FACILITIES
Business Standard reported that, The Tuticorin Port will develop coal handling facilities for state-run Neyveli Lignite Corporation (NLC) and Coasta ...
Monday, 25 May 09
MMTC TO IMPORT 12.5 MN TN COAL FOR NTPC
India's State-run trading firm MMTC Ltd will import 12.5 million tonnes of coal this fiscal for the country’s largest power producer, NTPC. M ...
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- Riau Bara Harum - Indonesia
- Therma Luzon, Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Kideco Jaya Agung - Indonesia
- Renaissance Capital - South Africa
- Karbindo Abesyapradhi - Indoneisa
- Borneo Indobara - Indonesia
- Chettinad Cement Corporation Ltd - India
- Karaikal Port Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- The University of Queensland
- Kumho Petrochemical, South Korea
- Orica Mining Services - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Africa Commodities Group - South Africa
- Asmin Koalindo Tuhup - Indonesia
- Aboitiz Power Corporation - Philippines
- Vedanta Resources Plc - India
- Ministry of Transport, Egypt
- South Luzon Thermal Energy Corporation
- Toyota Tsusho Corporation, Japan
- GN Power Mariveles Coal Plant, Philippines
- Banpu Public Company Limited - Thailand
- Ambuja Cements Ltd - India
- Semirara Mining Corp, Philippines
- Independent Power Producers Association of India
- Pipit Mutiara Jaya. PT, Indonesia
- Romanian Commodities Exchange
- Deloitte Consulting - India
- Siam City Cement PLC, Thailand
- Bayan Resources Tbk. - Indonesia
- Larsen & Toubro Limited - India
- Sarangani Energy Corporation, Philippines
- Ministry of Mines - Canada
- Indo Tambangraya Megah - Indonesia
- Electricity Authority, New Zealand
- Jaiprakash Power Ventures ltd
- TNB Fuel Sdn Bhd - Malaysia
- Timah Investasi Mineral - Indoneisa
- Central Electricity Authority - India
- Formosa Plastics Group - Taiwan
- Ministry of Finance - Indonesia
- Energy Link Ltd, New Zealand
- Straits Asia Resources Limited - Singapore
- Gujarat Electricity Regulatory Commission - India
- Bhatia International Limited - India
- Mercuria Energy - Indonesia
- Eastern Energy - Thailand
- Trasteel International SA, Italy
- Standard Chartered Bank - UAE
- Georgia Ports Authority, United States
- Ceylon Electricity Board - Sri Lanka
- Kepco SPC Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Maheswari Brothers Coal Limited - India
- Thiess Contractors Indonesia
- Energy Development Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Edison Trading Spa - Italy
- Maharashtra Electricity Regulatory Commission - India
- Mintek Dendrill Indonesia
- Gujarat Sidhee Cement - India
- Binh Thuan Hamico - Vietnam
- GAC Shipping (India) Pvt Ltd
- Bank of Tokyo Mitsubishi UFJ Ltd
- The Treasury - Australian Government
- Salva Resources Pvt Ltd - India
- McConnell Dowell - Australia
- Vijayanagar Sugar Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- ICICI Bank Limited - India
- Directorate Of Revenue Intelligence - India
- Indian Energy Exchange, India
- Essar Steel Hazira Ltd - India
- Globalindo Alam Lestari - Indonesia
- Pendopo Energi Batubara - Indonesia
- European Bulk Services B.V. - Netherlands
- Krishnapatnam Port Company Ltd. - India
- Neyveli Lignite Corporation Ltd, - India
- New Zealand Coal & Carbon
- London Commodity Brokers - England
- Latin American Coal - Colombia
- Tata Chemicals Ltd - India
- Coastal Gujarat Power Limited - India
- San Jose City I Power Corp, Philippines
- Rashtriya Ispat Nigam Limited - India
- Wood Mackenzie - Singapore
- Petron Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Mjunction Services Limited - India
- Global Green Power PLC Corporation, Philippines
- Meralco Power Generation, Philippines
- Posco Energy - South Korea
- IEA Clean Coal Centre - UK
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Economic Council, Georgia
- Holcim Trading Pte Ltd - Singapore
- SMG Consultants - Indonesia
- Marubeni Corporation - India
- CIMB Investment Bank - Malaysia
- AsiaOL BioFuels Corp., Philippines
- Ind-Barath Power Infra Limited - India
- Antam Resourcindo - Indonesia
- Global Coal Blending Company Limited - Australia
- Aditya Birla Group - India
- Kalimantan Lumbung Energi - Indonesia
- Malabar Cements Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Sojitz Corporation - Japan
- PowerSource Philippines DevCo
- Leighton Contractors Pty Ltd - Australia
- SN Aboitiz Power Inc, Philippines
- ASAPP Information Group - India
- Baramulti Group, Indonesia
- MS Steel International - UAE
- Heidelberg Cement - Germany
- Uttam Galva Steels Limited - India
- Videocon Industries ltd - India
- Star Paper Mills Limited - India
- Sree Jayajothi Cements Limited - India
- Wilmar Investment Holdings
- Altura Mining Limited, Indonesia
- PTC India Limited - India
- SMC Global Power, Philippines
- Port Waratah Coal Services - Australia
- Bukit Makmur.PT - Indonesia
- Global Business Power Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Chamber of Mines of South Africa
- Iligan Light & Power Inc, Philippines
- Anglo American - United Kingdom
- Agrawal Coal Company - India
- Alfred C Toepfer International GmbH - Germany
- Central Java Power - Indonesia
- Australian Coal Association
- Jindal Steel & Power Ltd - India
- Simpson Spence & Young - Indonesia
- Bhoruka Overseas - Indonesia
- CNBM International Corporation - China
- Meenaskhi Energy Private Limited - India
- Barasentosa Lestari - Indonesia
- GMR Energy Limited - India
- Bhushan Steel Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- PetroVietnam Power Coal Import and Supply Company
- Carbofer General Trading SA - India
- Siam City Cement - Thailand
- Indian Oil Corporation Limited
- Xindia Steels Limited - India
- International Coal Ventures Pvt Ltd - India
- India Bulls Power Limited - India
- Parry Sugars Refinery, India
- Kaltim Prima Coal - Indonesia
- VISA Power Limited - India
- Samtan Co., Ltd - South Korea
- The State Trading Corporation of India Ltd
- White Energy Company Limited
- Miang Besar Coal Terminal - Indonesia
- Indika Energy - Indonesia
- Sakthi Sugars Limited - India
- Planning Commission, India
- Mercator Lines Limited - India
- Tamil Nadu electricity Board
- Thai Mozambique Logistica
- Madhucon Powers Ltd - India
- Sinarmas Energy and Mining - Indonesia
- LBH Netherlands Bv - Netherlands
- Directorate General of MIneral and Coal - Indonesia
- Attock Cement Pakistan Limited
- Kohat Cement Company Ltd. - Pakistan
- Power Finance Corporation Ltd., India
- Bangladesh Power Developement Board
- Bharathi Cement Corporation - India
- Parliament of New Zealand
- GVK Power & Infra Limited - India
- Minerals Council of Australia
- Dalmia Cement Bharat India
- Orica Australia Pty. Ltd.
- Coal and Oil Company - UAE
- Medco Energi Mining Internasional
- Electricity Generating Authority of Thailand
- Australian Commodity Traders Exchange
- Billiton Holdings Pty Ltd - Australia
- Makarim & Taira - Indonesia
- Price Waterhouse Coopers - Russia
- Metalloyd Limited - United Kingdom
- Indogreen Group - Indonesia
- Merrill Lynch Commodities Europe
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Commonwealth Bank - Australia
- Goldman Sachs - Singapore
- Coalindo Energy - Indonesia
- Oldendorff Carriers - Singapore
- Manunggal Multi Energi - Indonesia
- OPG Power Generation Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Singapore Mercantile Exchange
- Rio Tinto Coal - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Grasim Industreis Ltd - India
- Interocean Group of Companies - India
- Sical Logistics Limited - India
- Indonesian Coal Mining Association
- Offshore Bulk Terminal Pte Ltd, Singapore
- IHS Mccloskey Coal Group - USA
- Kobexindo Tractors - Indoneisa
- Vizag Seaport Private Limited - India
- Eastern Coal Council - USA
- Lanco Infratech Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Cement Manufacturers Association - India
- Sindya Power Generating Company Private Ltd
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