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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, 13 April 09
INDIA'S NTPC FOURTH-QUARTER PROFIT RISES 30% ON POWER OUTPUT - BLOOMBERG
NTPC Ltd., India’s biggest electricity generator, said profit rose 30 percent in the fourth quarter after higher efficiency helped production. ...
Thursday, 09 April 09
INDONESIAN CILACAP, FISHERMEN PROTEST COAL BARGES ANCHORING IN BAY - THE JAKARTA POST
Fishermen in Cilacap, Central Java, have protested against the presence of dozens of coal barges lying at anchor in Teluk Penyu Bay, claiming they a ...
Thursday, 09 April 09
INDONESIA'S PLN (STATE ELECTRICITY COMPANY) TO SET POWER PURCHASE PRICES FOR INDEPENDENT PRODUCERS - THE JAKARTA POST
State power company PT PLN holds the mandate to set power purchase prices to buy electricity produced by its (IPP) business partners, aiming at flex ...
Wednesday, 08 April 09
ARCELORMITTAL BUYS STAKE IN COAL OF AFRICA - MINEWEB
Steel maker, ArcelorMittal SA, has acquired a 16.3 percent stake in Coal of Africa Ltd. for $44.98 million in cash.
ArcelorMittal SA, the South A ...
Wednesday, 08 April 09
EXPORTS AT AUSTRALIA NEWCASTLE COAL PORT FALL ON STORM -MINING-JOURNAL
Coal exports from Australia's Newcastle port, the world's largest coal export terminal, fell roughly 18% last week to a 4½-month low, as ro ...
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- Mercator Lines Limited - India
- Orica Mining Services - Indonesia
- Barasentosa Lestari - Indonesia
- Malabar Cements Ltd - India
- Indo Tambangraya Megah - Indonesia
- Grasim Industreis Ltd - India
- Borneo Indobara - Indonesia
- Aboitiz Power Corporation - Philippines
- Bhatia International Limited - India
- Price Waterhouse Coopers - Russia
- PTC India Limited - India
- Essar Steel Hazira Ltd - India
- Indonesian Coal Mining Association
- Carbofer General Trading SA - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Eastern Coal Council - USA
- Coalindo Energy - Indonesia
- Siam City Cement PLC, Thailand
- Bhoruka Overseas - Indonesia
- Salva Resources Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Gujarat Sidhee Cement - India
- Bukit Asam (Persero) Tbk - Indonesia
- Larsen & Toubro Limited - India
- Marubeni Corporation - India
- Electricity Generating Authority of Thailand
- Wood Mackenzie - Singapore
- Cigading International Bulk Terminal - Indonesia
- Goldman Sachs - Singapore
- Antam Resourcindo - Indonesia
- VISA Power Limited - India
- Parliament of New Zealand
- TeaM Sual Corporation - Philippines
- The State Trading Corporation of India Ltd
- Oldendorff Carriers - Singapore
- Wilmar Investment Holdings
- Edison Trading Spa - Italy
- Heidelberg Cement - Germany
- Indian Energy Exchange, India
- International Coal Ventures Pvt Ltd - India
- Tata Chemicals Ltd - India
- Medco Energi Mining Internasional
- Minerals Council of Australia
- London Commodity Brokers - England
- GAC Shipping (India) Pvt Ltd
- Posco Energy - South Korea
- Aditya Birla Group - India
- Riau Bara Harum - Indonesia
- The University of Queensland
- Baramulti Group, Indonesia
- SN Aboitiz Power Inc, Philippines
- Interocean Group of Companies - India
- Globalindo Alam Lestari - Indonesia
- Leighton Contractors Pty Ltd - Australia
- GMR Energy Limited - India
- Power Finance Corporation Ltd., India
- Eastern Energy - Thailand
- Australian Coal Association
- Dalmia Cement Bharat India
- Semirara Mining Corp, Philippines
- Global Coal Blending Company Limited - Australia
- SMC Global Power, Philippines
- Pendopo Energi Batubara - Indonesia
- Bangladesh Power Developement Board
- Metalloyd Limited - United Kingdom
- Alfred C Toepfer International GmbH - Germany
- Karbindo Abesyapradhi - Indoneisa
- Ceylon Electricity Board - Sri Lanka
- Mercuria Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- MS Steel International - UAE
- Makarim & Taira - Indonesia
- Bharathi Cement Corporation - India
- Thiess Contractors Indonesia
- Romanian Commodities Exchange
- Mjunction Services Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Kartika Selabumi Mining - Indonesia
- Bulk Trading Sa - Switzerland
- Bhushan Steel Limited - India
- Sinarmas Energy and Mining - Indonesia
- GVK Power & Infra Limited - India
- South Luzon Thermal Energy Corporation
- Port Waratah Coal Services - Australia
- Maharashtra Electricity Regulatory Commission - India
- Directorate Of Revenue Intelligence - India
- Banpu Public Company Limited - Thailand
- Xindia Steels Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Indogreen Group - Indonesia
- Global Business Power Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Commonwealth Bank - Australia
- Ministry of Finance - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Trasteel International SA, Italy
- Sakthi Sugars Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Intertek Mineral Services - Indonesia
- Africa Commodities Group - South Africa
- Energy Development Corp, Philippines
- Central Electricity Authority - India
- Renaissance Capital - South Africa
- ASAPP Information Group - India
- Indika Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Cement Manufacturers Association - India
- Kaltim Prima Coal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Green Power PLC Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Semirara Mining and Power Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Energy Link Ltd, New Zealand
- Ambuja Cements Ltd - India
- IHS Mccloskey Coal Group - USA
- Chamber of Mines of South Africa
- Ministry of Transport, Egypt
- Coastal Gujarat Power Limited - India
- CIMB Investment Bank - Malaysia
- Madhucon Powers Ltd - India
- Formosa Plastics Group - Taiwan
- Toyota Tsusho Corporation, Japan
- Central Java Power - Indonesia
- Kideco Jaya Agung - Indonesia
- Standard Chartered Bank - UAE
- Kapuas Tunggal Persada - Indonesia
- Rio Tinto Coal - Australia
- Rashtriya Ispat Nigam Limited - India
- Vizag Seaport Private Limited - India
- Maheswari Brothers Coal Limited - India
- McConnell Dowell - Australia
- Gujarat Mineral Development Corp Ltd - India
- Samtan Co., Ltd - South Korea
- White Energy Company Limited
- Altura Mining Limited, Indonesia
- PNOC Exploration Corporation - Philippines
- TNB Fuel Sdn Bhd - Malaysia
- OPG Power Generation Pvt Ltd - India
- CNBM International Corporation - China
- Kumho Petrochemical, South Korea
- Australian Commodity Traders Exchange
- Indian Oil Corporation Limited
- Simpson Spence & Young - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Petrochimia International Co. Ltd.- Taiwan
- Holcim Trading Pte Ltd - Singapore
- Deloitte Consulting - India
- Miang Besar Coal Terminal - Indonesia
- Star Paper Mills Limited - India
- Mintek Dendrill Indonesia
- Sindya Power Generating Company Private Ltd
- Chettinad Cement Corporation Ltd - India
- LBH Netherlands Bv - Netherlands
- IEA Clean Coal Centre - UK
- Latin American Coal - Colombia
- New Zealand Coal & Carbon
- Merrill Lynch Commodities Europe
- Orica Australia Pty. Ltd.
- Videocon Industries ltd - India
- Billiton Holdings Pty Ltd - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- SMG Consultants - Indonesia
- Electricity Authority, New Zealand
- Anglo American - United Kingdom
- GN Power Mariveles Coal Plant, Philippines
- Sojitz Corporation - Japan
- Sree Jayajothi Cements Limited - India
- Tamil Nadu electricity Board
- Bayan Resources Tbk. - Indonesia
- Straits Asia Resources Limited - Singapore
- Thai Mozambique Logistica
- Singapore Mercantile Exchange
- Agrawal Coal Company - India
- Georgia Ports Authority, United States
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Kepco SPC Power Corporation, Philippines
- Parry Sugars Refinery, India
- Jaiprakash Power Ventures ltd
- Therma Luzon, Inc, Philippines
- Binh Thuan Hamico - Vietnam
- Savvy Resources Ltd - HongKong
- PetroVietnam Power Coal Import and Supply Company
- Meenaskhi Energy Private Limited - India
- Uttam Galva Steels Limited - India
- Iligan Light & Power Inc, Philippines
- Vedanta Resources Plc - India
- Petron Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- PowerSource Philippines DevCo
- Ministry of Mines - Canada
- The Treasury - Australian Government
- Bukit Makmur.PT - Indonesia
- Sical Logistics Limited - India
- Krishnapatnam Port Company Ltd. - India
- India Bulls Power Limited - India
- Economic Council, Georgia
- ICICI Bank Limited - India
- Coal and Oil Company - UAE
- Attock Cement Pakistan Limited
- Meralco Power Generation, Philippines
- Independent Power Producers Association of India
- Ind-Barath Power Infra Limited - India
- Kobexindo Tractors - Indoneisa
- European Bulk Services B.V. - Netherlands
- Siam City Cement - Thailand
- Bukit Baiduri Energy - Indonesia
- Planning Commission, India
- Asmin Koalindo Tuhup - Indonesia
- Sarangani Energy Corporation, Philippines
- Lanco Infratech Ltd - India
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