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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, 08 May 09
INDONESIAN STATE AUDIT BOARD COULD ONLY REACHED A SMALL NUMBER OF KP AND PKP2B - MAJALAHTAMBANG
THE LACK of personnel and the very limited time period have been the reasons why the 2nd semester of the special purpose audit for coal mining ...
Friday, 08 May 09
B.C.'S MINING INDUSTRY HIGH COAL PRICES TO RECORD 2008 PROFITS - PAGUNTAKA
AGGREGATE pre-tax earnings rose to $3.2 billion, the highest amount in the 41-year history of a PricewaterhouseCoppers survey.
B.C.’s minin ...
Thursday, 07 May 09
ASIA COAL-PRICES EASE TO NEAR $63 ON DEMAND CONCERNS - REUTERS
AUSTRALIAN thermal coal prices, a benchmark for Asia, edged lower to around $63 a tonne on concerns over demand, after hitting a two-week high of $6 ...
Thursday, 07 May 09
RICHARDS BAY COAL SHIPMENTS FALL MOST IN 9 MONTHS - BLOOMBERG
RICHARDS BAY Coal Terminal Ltd., Africa’s largest coal-export facility, said shipments fell 24 percent last month, the biggest drop in nine mo ...
Tuesday, 05 May 09
NEWCASTLE PORT'S WEEKLY COAL EXPORTS INCREASE - BLOOMBERG
COAL shipments from Australia’s Newcastle port, the world’s biggest export harbor for the fuel, rose 18 percent last week while the numb ...
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- London Commodity Brokers - England
- CNBM International Corporation - China
- Semirara Mining Corp, Philippines
- Central Java Power - Indonesia
- Romanian Commodities Exchange
- Riau Bara Harum - Indonesia
- Intertek Mineral Services - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Global Coal Blending Company Limited - Australia
- OPG Power Generation Pvt Ltd - India
- Mercator Lines Limited - India
- Latin American Coal - Colombia
- Miang Besar Coal Terminal - Indonesia
- The University of Queensland
- Kepco SPC Power Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Lanco Infratech Ltd - India
- McConnell Dowell - Australia
- Malabar Cements Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Commonwealth Bank - Australia
- Renaissance Capital - South Africa
- Manunggal Multi Energi - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Gujarat Mineral Development Corp Ltd - India
- New Zealand Coal & Carbon
- Orica Australia Pty. Ltd.
- Chettinad Cement Corporation Ltd - India
- Star Paper Mills Limited - India
- Interocean Group of Companies - India
- Directorate General of MIneral and Coal - Indonesia
- Meralco Power Generation, Philippines
- Eastern Energy - Thailand
- VISA Power Limited - India
- Indonesian Coal Mining Association
- Pendopo Energi Batubara - Indonesia
- Petron Corporation, Philippines
- Eastern Coal Council - USA
- Bangladesh Power Developement Board
- Heidelberg Cement - Germany
- The Treasury - Australian Government
- GMR Energy Limited - India
- Salva Resources Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Bukit Asam (Persero) Tbk - Indonesia
- Energy Link Ltd, New Zealand
- Ministry of Finance - Indonesia
- Madhucon Powers Ltd - India
- Attock Cement Pakistan Limited
- Aditya Birla Group - India
- Kideco Jaya Agung - Indonesia
- CIMB Investment Bank - Malaysia
- Electricity Generating Authority of Thailand
- IEA Clean Coal Centre - UK
- Edison Trading Spa - Italy
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mjunction Services Limited - India
- Formosa Plastics Group - Taiwan
- European Bulk Services B.V. - Netherlands
- Energy Development Corp, Philippines
- South Luzon Thermal Energy Corporation
- SMG Consultants - Indonesia
- Trasteel International SA, Italy
- Global Green Power PLC Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- Bukit Makmur.PT - Indonesia
- Indian Oil Corporation Limited
- Australian Commodity Traders Exchange
- Bhushan Steel Limited - India
- Cigading International Bulk Terminal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- SMC Global Power, Philippines
- Vizag Seaport Private Limited - India
- Uttam Galva Steels Limited - India
- Wilmar Investment Holdings
- Marubeni Corporation - India
- Metalloyd Limited - United Kingdom
- Jaiprakash Power Ventures ltd
- MS Steel International - UAE
- Cement Manufacturers Association - India
- Vijayanagar Sugar Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- International Coal Ventures Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Xindia Steels Limited - India
- Meenaskhi Energy Private Limited - India
- Indian Energy Exchange, India
- SN Aboitiz Power Inc, Philippines
- Siam City Cement PLC, Thailand
- Larsen & Toubro Limited - India
- Bhoruka Overseas - Indonesia
- Sakthi Sugars Limited - India
- Krishnapatnam Port Company Ltd. - India
- Bukit Baiduri Energy - Indonesia
- ASAPP Information Group - India
- Independent Power Producers Association of India
- Petrochimia International Co. Ltd.- Taiwan
- Electricity Authority, New Zealand
- GAC Shipping (India) Pvt Ltd
- Merrill Lynch Commodities Europe
- TNB Fuel Sdn Bhd - Malaysia
- Africa Commodities Group - South Africa
- Power Finance Corporation Ltd., India
- Economic Council, Georgia
- Ministry of Mines - Canada
- Coalindo Energy - Indonesia
- Borneo Indobara - Indonesia
- Sarangani Energy Corporation, Philippines
- PowerSource Philippines DevCo
- Coastal Gujarat Power Limited - India
- Georgia Ports Authority, United States
- Dalmia Cement Bharat India
- Tamil Nadu electricity Board
- Australian Coal Association
- Wood Mackenzie - Singapore
- Maheswari Brothers Coal Limited - India
- San Jose City I Power Corp, Philippines
- Sojitz Corporation - Japan
- Ind-Barath Power Infra Limited - India
- Banpu Public Company Limited - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Posco Energy - South Korea
- Indo Tambangraya Megah - Indonesia
- Samtan Co., Ltd - South Korea
- Indogreen Group - Indonesia
- Bulk Trading Sa - Switzerland
- Grasim Industreis Ltd - India
- Parry Sugars Refinery, India
- Orica Mining Services - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- TeaM Sual Corporation - Philippines
- Sree Jayajothi Cements Limited - India
- Antam Resourcindo - Indonesia
- Ministry of Transport, Egypt
- Carbofer General Trading SA - India
- Kohat Cement Company Ltd. - Pakistan
- Holcim Trading Pte Ltd - Singapore
- Sinarmas Energy and Mining - Indonesia
- Minerals Council of Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Altura Mining Limited, Indonesia
- Deloitte Consulting - India
- Siam City Cement - Thailand
- Agrawal Coal Company - India
- Directorate Of Revenue Intelligence - India
- Sindya Power Generating Company Private Ltd
- Karaikal Port Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Coal and Oil Company - UAE
- Savvy Resources Ltd - HongKong
- Kapuas Tunggal Persada - Indonesia
- White Energy Company Limited
- Mercuria Energy - Indonesia
- PNOC Exploration Corporation - Philippines
- Oldendorff Carriers - Singapore
- Makarim & Taira - Indonesia
- Baramulti Group, Indonesia
- Globalindo Alam Lestari - Indonesia
- Bharathi Cement Corporation - India
- Semirara Mining and Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- ICICI Bank Limited - India
- Price Waterhouse Coopers - Russia
- Bayan Resources Tbk. - Indonesia
- Anglo American - United Kingdom
- Sical Logistics Limited - India
- Kartika Selabumi Mining - Indonesia
- Kobexindo Tractors - Indoneisa
- Indika Energy - Indonesia
- Gujarat Sidhee Cement - India
- Straits Asia Resources Limited - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Videocon Industries ltd - India
- AsiaOL BioFuels Corp., Philippines
- Parliament of New Zealand
- Aboitiz Power Corporation - Philippines
- LBH Netherlands Bv - Netherlands
- Global Business Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Jorong Barutama Greston.PT - Indonesia
- Medco Energi Mining Internasional
- Essar Steel Hazira Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Rio Tinto Coal - Australia
- Gujarat Electricity Regulatory Commission - India
- Bahari Cakrawala Sebuku - Indonesia
- PTC India Limited - India
- Leighton Contractors Pty Ltd - Australia
- Tata Chemicals Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- GVK Power & Infra Limited - India
- Thai Mozambique Logistica
- Simpson Spence & Young - Indonesia
- Planning Commission, India
- Therma Luzon, Inc, Philippines
- Thiess Contractors Indonesia
- Goldman Sachs - Singapore
- Bhatia International Limited - India
- IHS Mccloskey Coal Group - USA
- Kumho Petrochemical, South Korea
- Mintek Dendrill Indonesia
- The State Trading Corporation of India Ltd
- India Bulls Power Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Standard Chartered Bank - UAE
- Central Electricity Authority - India
- Vedanta Resources Plc - India
- Chamber of Mines of South Africa
- Iligan Light & Power Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Jindal Steel & Power Ltd - India
- Ambuja Cements Ltd - India
- Singapore Mercantile Exchange
- Port Waratah Coal Services - Australia
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