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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, 18 March 09
MANILA'S NAPOCOR SAYS BIDDING FOR 100,000T COAL FAILS - REUTERS
Top Philippine electricityproducer National Power Corp (Napocor) was unable to secure 100,000 tonnes of local coal for one of its power plantsfollow ...
Wednesday, 18 March 09
INDONESIA'S PLN APPOINTS KPC TO SUPPLY COAL - REUTERS
State electricity firm Perusahaan Listrik Negara (PLN) appointed PT Kaltim Prima Coal to supply 1 million tonnes of coal per annum to Tanjung Jati B ...
Monday, 16 March 09
TATA POWER HAS NO PLAN TO SELL STAKE IN INDONESIA BUMI MINES - BLOOMBERG
Tata Power Co., India’s biggest electricity generator outside state control, said it has “no intention” to sell its stake in two I ...
Monday, 16 March 09
ANTAM SELECTS PARTNERS FOR POMALAA POWER PLANT - THE JAKARTA POST
PT Aneka Tambang Tbk, Indonesia’s second-largest nickel producer, said it intended to develop a $300 million coal-fired plant in Pomalaa, Sout ...
Monday, 16 March 09
ADARO TO BOLSTER SUPPLY CHAIN THROUGH ACQUISITIONS - THE JAKARTA POST
PT Adaro Energy Tbk, Indonesia's second-largest coal producer, plans to acquire a coal barging and transshipment company to improve its supply chai ...
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- Economic Council, Georgia
- Directorate Of Revenue Intelligence - India
- OPG Power Generation Pvt Ltd - India
- Electricity Authority, New Zealand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Krishnapatnam Port Company Ltd. - India
- Trasteel International SA, Italy
- Parliament of New Zealand
- Deloitte Consulting - India
- Mercator Lines Limited - India
- Essar Steel Hazira Ltd - India
- Price Waterhouse Coopers - Russia
- Tamil Nadu electricity Board
- Larsen & Toubro Limited - India
- Therma Luzon, Inc, Philippines
- Singapore Mercantile Exchange
- Kideco Jaya Agung - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Global Green Power PLC Corporation, Philippines
- Altura Mining Limited, Indonesia
- Bangladesh Power Developement Board
- Chettinad Cement Corporation Ltd - India
- Kepco SPC Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Jindal Steel & Power Ltd - India
- GAC Shipping (India) Pvt Ltd
- Bhushan Steel Limited - India
- Bukit Makmur.PT - Indonesia
- The Treasury - Australian Government
- Karaikal Port Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Kumho Petrochemical, South Korea
- Bhoruka Overseas - Indonesia
- Agrawal Coal Company - India
- Directorate General of MIneral and Coal - Indonesia
- SMC Global Power, Philippines
- ASAPP Information Group - India
- Australian Commodity Traders Exchange
- Semirara Mining Corp, Philippines
- Iligan Light & Power Inc, Philippines
- Thiess Contractors Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Simpson Spence & Young - Indonesia
- Meenaskhi Energy Private Limited - India
- Medco Energi Mining Internasional
- Pipit Mutiara Jaya. PT, Indonesia
- Bhatia International Limited - India
- Jaiprakash Power Ventures ltd
- GMR Energy Limited - India
- Globalindo Alam Lestari - Indonesia
- Metalloyd Limited - United Kingdom
- GVK Power & Infra Limited - India
- Posco Energy - South Korea
- Xindia Steels Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Star Paper Mills Limited - India
- Eastern Energy - Thailand
- Australian Coal Association
- Banpu Public Company Limited - Thailand
- Malabar Cements Ltd - India
- Coal and Oil Company - UAE
- Energy Development Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Port Waratah Coal Services - Australia
- Dalmia Cement Bharat India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- Uttam Galva Steels Limited - India
- Marubeni Corporation - India
- Indian Energy Exchange, India
- Indonesian Coal Mining Association
- Africa Commodities Group - South Africa
- LBH Netherlands Bv - Netherlands
- Offshore Bulk Terminal Pte Ltd, Singapore
- Orica Australia Pty. Ltd.
- ICICI Bank Limited - India
- Georgia Ports Authority, United States
- Carbofer General Trading SA - India
- Tata Chemicals Ltd - India
- PTC India Limited - India
- Ministry of Transport, Egypt
- Indo Tambangraya Megah - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Intertek Mineral Services - Indonesia
- Manunggal Multi Energi - Indonesia
- Anglo American - United Kingdom
- Videocon Industries ltd - India
- Savvy Resources Ltd - HongKong
- Miang Besar Coal Terminal - Indonesia
- London Commodity Brokers - England
- Indogreen Group - Indonesia
- PowerSource Philippines DevCo
- Mjunction Services Limited - India
- European Bulk Services B.V. - Netherlands
- Antam Resourcindo - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Toyota Tsusho Corporation, Japan
- Siam City Cement - Thailand
- Cement Manufacturers Association - India
- Mintek Dendrill Indonesia
- Leighton Contractors Pty Ltd - Australia
- Latin American Coal - Colombia
- Wood Mackenzie - Singapore
- PNOC Exploration Corporation - Philippines
- Minerals Council of Australia
- Global Business Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Grasim Industreis Ltd - India
- Kaltim Prima Coal - Indonesia
- Rio Tinto Coal - Australia
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Finance - Indonesia
- Romanian Commodities Exchange
- Edison Trading Spa - Italy
- Orica Mining Services - Indonesia
- Thai Mozambique Logistica
- Kalimantan Lumbung Energi - Indonesia
- Sakthi Sugars Limited - India
- Meralco Power Generation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Oldendorff Carriers - Singapore
- Wilmar Investment Holdings
- Goldman Sachs - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Heidelberg Cement - Germany
- Binh Thuan Hamico - Vietnam
- Sindya Power Generating Company Private Ltd
- Cigading International Bulk Terminal - Indonesia
- Makarim & Taira - Indonesia
- Mercuria Energy - Indonesia
- Bulk Trading Sa - Switzerland
- Bukit Asam (Persero) Tbk - Indonesia
- Petron Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Kartika Selabumi Mining - Indonesia
- Ministry of Mines - Canada
- Power Finance Corporation Ltd., India
- Bharathi Cement Corporation - India
- Lanco Infratech Ltd - India
- Coalindo Energy - Indonesia
- Parry Sugars Refinery, India
- Vedanta Resources Plc - India
- Sinarmas Energy and Mining - Indonesia
- Indian Oil Corporation Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kobexindo Tractors - Indoneisa
- Bayan Resources Tbk. - Indonesia
- IEA Clean Coal Centre - UK
- CIMB Investment Bank - Malaysia
- Barasentosa Lestari - Indonesia
- Central Electricity Authority - India
- Sical Logistics Limited - India
- Independent Power Producers Association of India
- Vizag Seaport Private Limited - India
- McConnell Dowell - Australia
- White Energy Company Limited
- CNBM International Corporation - China
- Electricity Generating Authority of Thailand
- Planning Commission, India
- IHS Mccloskey Coal Group - USA
- Madhucon Powers Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Semirara Mining and Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Global Coal Blending Company Limited - Australia
- Indika Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Attock Cement Pakistan Limited
- Standard Chartered Bank - UAE
- Ambuja Cements Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Ind-Barath Power Infra Limited - India
- Aditya Birla Group - India
- The State Trading Corporation of India Ltd
- Interocean Group of Companies - India
- Pendopo Energi Batubara - Indonesia
- Energy Link Ltd, New Zealand
- Merrill Lynch Commodities Europe
- San Jose City I Power Corp, Philippines
- Chamber of Mines of South Africa
- Petrochimia International Co. Ltd.- Taiwan
- MS Steel International - UAE
- Riau Bara Harum - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Aboitiz Power Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Gujarat Sidhee Cement - India
- Gujarat Mineral Development Corp Ltd - India
- India Bulls Power Limited - India
- Maheswari Brothers Coal Limited - India
- Sojitz Corporation - Japan
- Gujarat Electricity Regulatory Commission - India
- SMG Consultants - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Renaissance Capital - South Africa
- The University of Queensland
- New Zealand Coal & Carbon
- Kapuas Tunggal Persada - Indonesia
- Eastern Coal Council - USA
- Coastal Gujarat Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- International Coal Ventures Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Borneo Indobara - Indonesia
- Straits Asia Resources Limited - Singapore
- VISA Power Limited - India
- Baramulti Group, Indonesia
- Central Java Power - Indonesia
- Commonwealth Bank - Australia
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