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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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Monday, 20 April 09
PT PAMAPERSADA SEES ITS REVENUE TO CLIMB BY 20% IN 2009 - STEELGURU
PT Pamapersada Nusantara, a unit of Indonesia's PT United Tractors, said that its 2009 profit will be similar to last year, even as it forecasts re ...
Monday, 20 April 09
NIPPON STEEL SEMI-SOFT COAL PRICE SAID TO DROP 67% - BLOOMBERG
Nippon Steel Corp., Japan’s largest mill, will pay up to 67 percent less for semi-soft coking coal this fiscal year, two industry executives w ...
Monday, 20 April 09
INTERNATIONAL INVESTORS SEEK TO SELL ADARO STAKES - MONEY.CNN
Some international investors in PT Adaro Energy ( ADRO.JK) have approached other companies to sell around a combined 17% stake in the coal miner via ...
Friday, 17 April 09
BHATIA COAL INDIA, VITOL IN DISPUTE - COAL JUNCTION
Bhatia Coal India, a subsidiary of the Bhatia International Group, terminated a coal supply contract with traders Vitol and has initiated arbitratio ...
Friday, 17 April 09
JSW TO BUY THERMAL COAL MINE IN AFRICA
Sajjan Jindal-led JSW Energy is close to acquiring a sub-Saharan African thermal coal mine, which has reserves of more than 200 million tons, to min ...
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- Gujarat Sidhee Cement - India
- Romanian Commodities Exchange
- Ind-Barath Power Infra Limited - India
- Intertek Mineral Services - Indonesia
- Ministry of Transport, Egypt
- Global Business Power Corporation, Philippines
- Ambuja Cements Ltd - India
- Parliament of New Zealand
- Singapore Mercantile Exchange
- Heidelberg Cement - Germany
- PNOC Exploration Corporation - Philippines
- Vizag Seaport Private Limited - India
- Therma Luzon, Inc, Philippines
- Barasentosa Lestari - Indonesia
- Eastern Energy - Thailand
- Energy Development Corp, Philippines
- PowerSource Philippines DevCo
- GAC Shipping (India) Pvt Ltd
- Sree Jayajothi Cements Limited - India
- India Bulls Power Limited - India
- Indian Energy Exchange, India
- Africa Commodities Group - South Africa
- GN Power Mariveles Coal Plant, Philippines
- MS Steel International - UAE
- Binh Thuan Hamico - Vietnam
- TeaM Sual Corporation - Philippines
- Kartika Selabumi Mining - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bhushan Steel Limited - India
- Attock Cement Pakistan Limited
- The State Trading Corporation of India Ltd
- Bangladesh Power Developement Board
- Directorate General of MIneral and Coal - Indonesia
- Xindia Steels Limited - India
- South Luzon Thermal Energy Corporation
- Siam City Cement - Thailand
- Karaikal Port Pvt Ltd - India
- Chamber of Mines of South Africa
- Ministry of Finance - Indonesia
- Central Java Power - Indonesia
- Uttam Galva Steels Limited - India
- Coastal Gujarat Power Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Straits Asia Resources Limited - Singapore
- Latin American Coal - Colombia
- Ministry of Mines - Canada
- LBH Netherlands Bv - Netherlands
- Semirara Mining and Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Toyota Tsusho Corporation, Japan
- Ceylon Electricity Board - Sri Lanka
- Vedanta Resources Plc - India
- Kobexindo Tractors - Indoneisa
- Cement Manufacturers Association - India
- Antam Resourcindo - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Leighton Contractors Pty Ltd - Australia
- SMC Global Power, Philippines
- Interocean Group of Companies - India
- White Energy Company Limited
- GVK Power & Infra Limited - India
- Larsen & Toubro Limited - India
- Bukit Baiduri Energy - Indonesia
- Independent Power Producers Association of India
- Globalindo Alam Lestari - Indonesia
- Sojitz Corporation - Japan
- IHS Mccloskey Coal Group - USA
- Madhucon Powers Ltd - India
- Indogreen Group - Indonesia
- The University of Queensland
- Kalimantan Lumbung Energi - Indonesia
- Standard Chartered Bank - UAE
- Thiess Contractors Indonesia
- Tata Chemicals Ltd - India
- Wilmar Investment Holdings
- Orica Australia Pty. Ltd.
- Thai Mozambique Logistica
- Trasteel International SA, Italy
- VISA Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Orica Mining Services - Indonesia
- Commonwealth Bank - Australia
- SMG Consultants - Indonesia
- CNBM International Corporation - China
- Sakthi Sugars Limited - India
- Lanco Infratech Ltd - India
- Indika Energy - Indonesia
- Carbofer General Trading SA - India
- Billiton Holdings Pty Ltd - Australia
- Coal and Oil Company - UAE
- Jaiprakash Power Ventures ltd
- ICICI Bank Limited - India
- Miang Besar Coal Terminal - Indonesia
- Maheswari Brothers Coal Limited - India
- Cigading International Bulk Terminal - Indonesia
- Minerals Council of Australia
- Sindya Power Generating Company Private Ltd
- AsiaOL BioFuels Corp., Philippines
- Meralco Power Generation, Philippines
- Economic Council, Georgia
- OPG Power Generation Pvt Ltd - India
- Rio Tinto Coal - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Bharathi Cement Corporation - India
- Salva Resources Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Coalindo Energy - Indonesia
- Australian Coal Association
- Chettinad Cement Corporation Ltd - India
- Bayan Resources Tbk. - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Simpson Spence & Young - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- McConnell Dowell - Australia
- Kapuas Tunggal Persada - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Bahari Cakrawala Sebuku - Indonesia
- Price Waterhouse Coopers - Russia
- Altura Mining Limited, Indonesia
- Meenaskhi Energy Private Limited - India
- Samtan Co., Ltd - South Korea
- Mjunction Services Limited - India
- Electricity Authority, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Videocon Industries ltd - India
- Iligan Light & Power Inc, Philippines
- ASAPP Information Group - India
- CIMB Investment Bank - Malaysia
- Indian Oil Corporation Limited
- London Commodity Brokers - England
- Global Coal Blending Company Limited - Australia
- Kideco Jaya Agung - Indonesia
- Edison Trading Spa - Italy
- Bulk Trading Sa - Switzerland
- Mintek Dendrill Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bhatia International Limited - India
- Manunggal Multi Energi - Indonesia
- Planning Commission, India
- Borneo Indobara - Indonesia
- IEA Clean Coal Centre - UK
- Wood Mackenzie - Singapore
- Holcim Trading Pte Ltd - Singapore
- Oldendorff Carriers - Singapore
- Siam City Cement PLC, Thailand
- Mercator Lines Limited - India
- Formosa Plastics Group - Taiwan
- Port Waratah Coal Services - Australia
- Goldman Sachs - Singapore
- Riau Bara Harum - Indonesia
- Renaissance Capital - South Africa
- PTC India Limited - India
- Merrill Lynch Commodities Europe
- Anglo American - United Kingdom
- Dalmia Cement Bharat India
- Directorate Of Revenue Intelligence - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- New Zealand Coal & Carbon
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mercuria Energy - Indonesia
- Posco Energy - South Korea
- Marubeni Corporation - India
- Essar Steel Hazira Ltd - India
- Australian Commodity Traders Exchange
- Alfred C Toepfer International GmbH - Germany
- Energy Link Ltd, New Zealand
- Savvy Resources Ltd - HongKong
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sical Logistics Limited - India
- Rashtriya Ispat Nigam Limited - India
- Indo Tambangraya Megah - Indonesia
- Kumho Petrochemical, South Korea
- Malabar Cements Ltd - India
- Bhoruka Overseas - Indonesia
- Makarim & Taira - Indonesia
- Pendopo Energi Batubara - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Sarangani Energy Corporation, Philippines
- Star Paper Mills Limited - India
- Baramulti Group, Indonesia
- Eastern Coal Council - USA
- Agrawal Coal Company - India
- Electricity Generating Authority of Thailand
- Power Finance Corporation Ltd., India
- Kohat Cement Company Ltd. - Pakistan
- The Treasury - Australian Government
- Aditya Birla Group - India
- Petrochimia International Co. Ltd.- Taiwan
- Bukit Makmur.PT - Indonesia
- Georgia Ports Authority, United States
- Metalloyd Limited - United Kingdom
- Semirara Mining Corp, Philippines
- Global Green Power PLC Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Medco Energi Mining Internasional
- Sinarmas Energy and Mining - Indonesia
- Parry Sugars Refinery, India
- Aboitiz Power Corporation - Philippines
- Grasim Industreis Ltd - India
- SN Aboitiz Power Inc, Philippines
- GMR Energy Limited - India
- Krishnapatnam Port Company Ltd. - India
- Kepco SPC Power Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Petron Corporation, Philippines
- San Jose City I Power Corp, Philippines
- Central Electricity Authority - India
- Deloitte Consulting - India
- Indonesian Coal Mining Association
- Tamil Nadu electricity Board
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