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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, 01 April 09
COAL FIRMS' PROFITS NOT EXPECTED TO GROW IN '09 - - THE JAKARTA POST (ANALYSTS)
Despite their windfall profits in 2008, analysts doubt that PT Bumi Resources Tbk or any other coal firms will post profit growth this year, with pr ...
Tuesday, 31 March 09
DEUTSCHE BANK TO ADD COAL, GAS, SHIPPING IN COMMODITY EXPANSION - BLOOMBERG
Deutsche Bank AG, after quadrupling revenue from commodities in two years, plans to add coal, European natural-gas and shipping to its business, ant ...
Monday, 30 March 09
CHINA SHENHUA SAYS AGREES DOMESTIC COAL DEALS - REUTERS
Chinese coal mining giant China Shenhua Energy Co has agreed long-term contracts with some Chinese power producers, its President Ling Wen said on M ...
Sunday, 29 March 09
SHENHUA ENERGY 2008 NET RISES 29% TO RECORD ON PRICES - BLOOMBERG
China Shenhua Energy Co Ltd., the nation’s biggest coal producer, said profit rose 29 percent to a record in 2008 after it increased productio ...
Friday, 27 March 09
SOUTH AFRICAN COAL EXPORTS EXPECTED TO RISE IN 2009, BUT RAIL WILL DETERMINE BY HOW MUCH - MININGWEEKLY
South Africa has an expanding coal-export terminal, but an uncertain rail capacity.
The mismatch is something South Africa cannot afford, given i ...
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- London Commodity Brokers - England
- Asmin Koalindo Tuhup - Indonesia
- Australian Coal Association
- Planning Commission, India
- Maheswari Brothers Coal Limited - India
- Manunggal Multi Energi - Indonesia
- Toyota Tsusho Corporation, Japan
- Bukit Makmur.PT - Indonesia
- MS Steel International - UAE
- Bhushan Steel Limited - India
- Riau Bara Harum - Indonesia
- Global Green Power PLC Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Minerals Council of Australia
- Georgia Ports Authority, United States
- Indian Energy Exchange, India
- PetroVietnam Power Coal Import and Supply Company
- Indika Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- White Energy Company Limited
- PowerSource Philippines DevCo
- International Coal Ventures Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Interocean Group of Companies - India
- Miang Besar Coal Terminal - Indonesia
- Edison Trading Spa - Italy
- Merrill Lynch Commodities Europe
- Bulk Trading Sa - Switzerland
- Vedanta Resources Plc - India
- Latin American Coal - Colombia
- IEA Clean Coal Centre - UK
- Indogreen Group - Indonesia
- Meenaskhi Energy Private Limited - India
- Goldman Sachs - Singapore
- Iligan Light & Power Inc, Philippines
- Medco Energi Mining Internasional
- Savvy Resources Ltd - HongKong
- Larsen & Toubro Limited - India
- Australian Commodity Traders Exchange
- Grasim Industreis Ltd - India
- Eastern Coal Council - USA
- Independent Power Producers Association of India
- Global Business Power Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- LBH Netherlands Bv - Netherlands
- Romanian Commodities Exchange
- Indian Oil Corporation Limited
- Holcim Trading Pte Ltd - Singapore
- Petron Corporation, Philippines
- Attock Cement Pakistan Limited
- Salva Resources Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Antam Resourcindo - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Energy Development Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- GAC Shipping (India) Pvt Ltd
- Semirara Mining Corp, Philippines
- Sojitz Corporation - Japan
- Orica Mining Services - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Bayan Resources Tbk. - Indonesia
- Commonwealth Bank - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Indonesian Coal Mining Association
- Power Finance Corporation Ltd., India
- TNB Fuel Sdn Bhd - Malaysia
- GMR Energy Limited - India
- Sical Logistics Limited - India
- Sindya Power Generating Company Private Ltd
- Tamil Nadu electricity Board
- Timah Investasi Mineral - Indoneisa
- Siam City Cement PLC, Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Intertek Mineral Services - Indonesia
- Wood Mackenzie - Singapore
- Altura Mining Limited, Indonesia
- Sakthi Sugars Limited - India
- Bukit Baiduri Energy - Indonesia
- Tata Chemicals Ltd - India
- VISA Power Limited - India
- Electricity Generating Authority of Thailand
- Baramulti Group, Indonesia
- Semirara Mining and Power Corporation, Philippines
- Bhatia International Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Price Waterhouse Coopers - Russia
- Pipit Mutiara Jaya. PT, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Deloitte Consulting - India
- Binh Thuan Hamico - Vietnam
- Jindal Steel & Power Ltd - India
- Coalindo Energy - Indonesia
- CNBM International Corporation - China
- Malabar Cements Ltd - India
- Globalindo Alam Lestari - Indonesia
- Ind-Barath Power Infra Limited - India
- Chettinad Cement Corporation Ltd - India
- Formosa Plastics Group - Taiwan
- Gujarat Electricity Regulatory Commission - India
- PNOC Exploration Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Sree Jayajothi Cements Limited - India
- Parliament of New Zealand
- The State Trading Corporation of India Ltd
- Agrawal Coal Company - India
- Gujarat Mineral Development Corp Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Oldendorff Carriers - Singapore
- Mjunction Services Limited - India
- Mercuria Energy - Indonesia
- India Bulls Power Limited - India
- Samtan Co., Ltd - South Korea
- Central Java Power - Indonesia
- Economic Council, Georgia
- Leighton Contractors Pty Ltd - Australia
- Krishnapatnam Port Company Ltd. - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- ASAPP Information Group - India
- Pendopo Energi Batubara - Indonesia
- Ministry of Transport, Egypt
- Borneo Indobara - Indonesia
- Therma Luzon, Inc, Philippines
- Electricity Authority, New Zealand
- Sarangani Energy Corporation, Philippines
- Lanco Infratech Ltd - India
- Vizag Seaport Private Limited - India
- Ministry of Finance - Indonesia
- Madhucon Powers Ltd - India
- Orica Australia Pty. Ltd.
- Carbofer General Trading SA - India
- Indo Tambangraya Megah - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Essar Steel Hazira Ltd - India
- Parry Sugars Refinery, India
- Thai Mozambique Logistica
- Aditya Birla Group - India
- Central Electricity Authority - India
- SMC Global Power, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Maharashtra Electricity Regulatory Commission - India
- McConnell Dowell - Australia
- Billiton Holdings Pty Ltd - Australia
- Jaiprakash Power Ventures ltd
- AsiaOL BioFuels Corp., Philippines
- Energy Link Ltd, New Zealand
- Meralco Power Generation, Philippines
- Bharathi Cement Corporation - India
- Marubeni Corporation - India
- CIMB Investment Bank - Malaysia
- Star Paper Mills Limited - India
- PTC India Limited - India
- European Bulk Services B.V. - Netherlands
- Singapore Mercantile Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- New Zealand Coal & Carbon
- Dalmia Cement Bharat India
- Banpu Public Company Limited - Thailand
- Coastal Gujarat Power Limited - India
- Rio Tinto Coal - Australia
- Thiess Contractors Indonesia
- Port Waratah Coal Services - Australia
- Videocon Industries ltd - India
- Kumho Petrochemical, South Korea
- Bangladesh Power Developement Board
- Kaltim Prima Coal - Indonesia
- Mintek Dendrill Indonesia
- GVK Power & Infra Limited - India
- Kideco Jaya Agung - Indonesia
- South Luzon Thermal Energy Corporation
- Karaikal Port Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Wilmar Investment Holdings
- Anglo American - United Kingdom
- Xindia Steels Limited - India
- Ministry of Mines - Canada
- Cigading International Bulk Terminal - Indonesia
- Mercator Lines Limited - India
- Coal and Oil Company - UAE
- Ambuja Cements Ltd - India
- The Treasury - Australian Government
- Petrochimia International Co. Ltd.- Taiwan
- The University of Queensland
- Directorate General of MIneral and Coal - Indonesia
- SMG Consultants - Indonesia
- Straits Asia Resources Limited - Singapore
- Bhoruka Overseas - Indonesia
- ICICI Bank Limited - India
- Cement Manufacturers Association - India
- Renaissance Capital - South Africa
- Directorate Of Revenue Intelligence - India
- Siam City Cement - Thailand
- San Jose City I Power Corp, Philippines
- Gujarat Sidhee Cement - India
- Africa Commodities Group - South Africa
- Posco Energy - South Korea
- Trasteel International SA, Italy
- Global Coal Blending Company Limited - Australia
- TeaM Sual Corporation - Philippines
- Makarim & Taira - Indonesia
- Barasentosa Lestari - Indonesia
- IHS Mccloskey Coal Group - USA
- Standard Chartered Bank - UAE
- Sinarmas Energy and Mining - Indonesia
- Chamber of Mines of South Africa
- Kohat Cement Company Ltd. - Pakistan
- Eastern Energy - Thailand
- Simpson Spence & Young - Indonesia
- Heidelberg Cement - Germany
- Rashtriya Ispat Nigam Limited - India
- Uttam Galva Steels Limited - India
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