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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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Saturday, 23 May 09
THE SPOT SUPRAMAX CONTINUED TO BE FIRM - VISTAAR SINGAPORE
COALspot.com (Singapore) : VISTAAR Shipping Pte Limited, an experienced ship operator from Singapore, said, the beginning of the week continued ...
Saturday, 23 May 09
INDONESIA'S COAL OUTPUT SLUMPS IN Q1 ON LOWER PRICES, FALLING DEMAND - THE JAKARTA GLOBE
Falling international coal prices, bad weather and other problems cut first-quarter coal output by 50 percent to 30 million tons against an initial ...
Saturday, 23 May 09
INDIAN GOVT PLANS TO BUILD FIVE COAL-BASED POWER PLANTS AT $3.5B TO END CRISIS - THE FINANCIAL EXPRESS
The government has started working on a plan to set up five coal-based power plants with combined capacity of 2,500 mega watt to solve the country' ...
Saturday, 23 May 09
INTERNATIONAL COAL VENTURES PVT LTD FORMED - INDIA SERVER
National Thermal Power Corporation Limited (NTPC Ltd), the largest thermal power generating company of India, has entered into a joint venture with ...
Friday, 22 May 09
CHURCHILL DOUBLES INDONESIAN COAL PROJECT RESOURCE ESTIMATE - STEEL GURU
Mining Weekly quoted Churchill Mining as saying that the resource at its East Kutai coal project in Indonesia has more than doubled to 3.18 billion ...
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- Global Coal Blending Company Limited - Australia
- Commonwealth Bank - Australia
- Neyveli Lignite Corporation Ltd, - India
- Chettinad Cement Corporation Ltd - India
- Lanco Infratech Ltd - India
- SMC Global Power, Philippines
- London Commodity Brokers - England
- Star Paper Mills Limited - India
- GMR Energy Limited - India
- Tata Chemicals Ltd - India
- Ambuja Cements Ltd - India
- Riau Bara Harum - Indonesia
- Interocean Group of Companies - India
- Billiton Holdings Pty Ltd - Australia
- Standard Chartered Bank - UAE
- SMG Consultants - Indonesia
- Jindal Steel & Power Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Mercuria Energy - Indonesia
- Oldendorff Carriers - Singapore
- Renaissance Capital - South Africa
- Barasentosa Lestari - Indonesia
- Bulk Trading Sa - Switzerland
- Coastal Gujarat Power Limited - India
- Bharathi Cement Corporation - India
- Larsen & Toubro Limited - India
- PTC India Limited - India
- Siam City Cement PLC, Thailand
- Indian Energy Exchange, India
- Directorate Of Revenue Intelligence - India
- Toyota Tsusho Corporation, Japan
- Manunggal Multi Energi - Indonesia
- ICICI Bank Limited - India
- Metalloyd Limited - United Kingdom
- Uttam Galva Steels Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- AsiaOL BioFuels Corp., Philippines
- Altura Mining Limited, Indonesia
- Energy Link Ltd, New Zealand
- Global Business Power Corporation, Philippines
- Antam Resourcindo - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Independent Power Producers Association of India
- Kartika Selabumi Mining - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mintek Dendrill Indonesia
- Madhucon Powers Ltd - India
- Makarim & Taira - Indonesia
- Kideco Jaya Agung - Indonesia
- Central Java Power - Indonesia
- South Luzon Thermal Energy Corporation
- Ind-Barath Power Infra Limited - India
- Goldman Sachs - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Posco Energy - South Korea
- GN Power Mariveles Coal Plant, Philippines
- Sakthi Sugars Limited - India
- PowerSource Philippines DevCo
- Iligan Light & Power Inc, Philippines
- Planning Commission, India
- Simpson Spence & Young - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Timah Investasi Mineral - Indoneisa
- Vizag Seaport Private Limited - India
- Sarangani Energy Corporation, Philippines
- Xindia Steels Limited - India
- Indika Energy - Indonesia
- Parry Sugars Refinery, India
- Sree Jayajothi Cements Limited - India
- Minerals Council of Australia
- Romanian Commodities Exchange
- Energy Development Corp, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Formosa Plastics Group - Taiwan
- Central Electricity Authority - India
- Essar Steel Hazira Ltd - India
- Ministry of Finance - Indonesia
- India Bulls Power Limited - India
- Thiess Contractors Indonesia
- Merrill Lynch Commodities Europe
- IHS Mccloskey Coal Group - USA
- Krishnapatnam Port Company Ltd. - India
- SN Aboitiz Power Inc, Philippines
- Parliament of New Zealand
- Marubeni Corporation - India
- CNBM International Corporation - China
- Indonesian Coal Mining Association
- Anglo American - United Kingdom
- Kaltim Prima Coal - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Mercator Lines Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Orica Mining Services - Indonesia
- Bukit Makmur.PT - Indonesia
- Kobexindo Tractors - Indoneisa
- Bahari Cakrawala Sebuku - Indonesia
- Petron Corporation, Philippines
- Cement Manufacturers Association - India
- Bangladesh Power Developement Board
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sojitz Corporation - Japan
- Meralco Power Generation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Leighton Contractors Pty Ltd - Australia
- Maheswari Brothers Coal Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Trasteel International SA, Italy
- Orica Australia Pty. Ltd.
- The State Trading Corporation of India Ltd
- International Coal Ventures Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Savvy Resources Ltd - HongKong
- Indogreen Group - Indonesia
- Videocon Industries ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Bayan Resources Tbk. - Indonesia
- CIMB Investment Bank - Malaysia
- Kepco SPC Power Corporation, Philippines
- Wood Mackenzie - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Sindya Power Generating Company Private Ltd
- OPG Power Generation Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Deloitte Consulting - India
- Aditya Birla Group - India
- The University of Queensland
- Jaiprakash Power Ventures ltd
- Baramulti Group, Indonesia
- Agrawal Coal Company - India
- Indo Tambangraya Megah - Indonesia
- McConnell Dowell - Australia
- Sinarmas Energy and Mining - Indonesia
- Eastern Energy - Thailand
- Coalindo Energy - Indonesia
- Vedanta Resources Plc - India
- Bhatia International Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Georgia Ports Authority, United States
- Grasim Industreis Ltd - India
- Heidelberg Cement - Germany
- Pendopo Energi Batubara - Indonesia
- Samtan Co., Ltd - South Korea
- Africa Commodities Group - South Africa
- Therma Luzon, Inc, Philippines
- Banpu Public Company Limited - Thailand
- Singapore Mercantile Exchange
- Binh Thuan Hamico - Vietnam
- TeaM Sual Corporation - Philippines
- Intertek Mineral Services - Indonesia
- Thai Mozambique Logistica
- Aboitiz Power Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Global Green Power PLC Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Eastern Coal Council - USA
- Semirara Mining Corp, Philippines
- Economic Council, Georgia
- Coal and Oil Company - UAE
- Mjunction Services Limited - India
- Price Waterhouse Coopers - Russia
- Electricity Generating Authority of Thailand
- VISA Power Limited - India
- Tamil Nadu electricity Board
- LBH Netherlands Bv - Netherlands
- San Jose City I Power Corp, Philippines
- Semirara Mining and Power Corporation, Philippines
- Bhushan Steel Limited - India
- Ministry of Mines - Canada
- Dalmia Cement Bharat India
- Ministry of Transport, Egypt
- Gujarat Sidhee Cement - India
- Chamber of Mines of South Africa
- Kumho Petrochemical, South Korea
- MS Steel International - UAE
- Karaikal Port Pvt Ltd - India
- Latin American Coal - Colombia
- Sical Logistics Limited - India
- Australian Coal Association
- Alfred C Toepfer International GmbH - Germany
- Australian Commodity Traders Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- ASAPP Information Group - India
- Borneo Indobara - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Edison Trading Spa - Italy
- PNOC Exploration Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- Straits Asia Resources Limited - Singapore
- White Energy Company Limited
- Bukit Baiduri Energy - Indonesia
- Carbofer General Trading SA - India
- New Zealand Coal & Carbon
- Vijayanagar Sugar Pvt Ltd - India
- Malabar Cements Ltd - India
- Wilmar Investment Holdings
- IEA Clean Coal Centre - UK
- GAC Shipping (India) Pvt Ltd
- Rashtriya Ispat Nigam Limited - India
- Rio Tinto Coal - Australia
- Indian Oil Corporation Limited
- Electricity Authority, New Zealand
- GVK Power & Infra Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Attock Cement Pakistan Limited
- Meenaskhi Energy Private Limited - India
- Power Finance Corporation Ltd., India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- Siam City Cement - Thailand
- Medco Energi Mining Internasional
- European Bulk Services B.V. - Netherlands
- The Treasury - Australian Government
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