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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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Thursday, 12 March 09
ANALYSIS-FIRST NEW JAPAN COAL DEAL MAY NOT SET BENCHMARK - FOREXPROS.COM
* Informal coal-deal practice may come to an end this year
* Buyers expected to ask for a discount
* Biggest losers may be Chinese coal suppli ...
Thursday, 12 March 09
DEPARTMENT RECEIVES REPORT FROM GEOLOGICAL BODY AND NEDO - ESDM
The Geological Body of the Department of Energy and Mineral Resources have presented their Joint Study on Evaluation of Coal Resources and Reserves ...
Wednesday, 11 March 09
TENAGA SHARES CLIMB AS LOWER COAL PRICES CUT COSTS - BLOOMBERG
Bloomberg reported that, Tenaga Nasional Bhd., Malaysia’s state-controlled utility, climbed the most in a month in Kuala Lumpur trading as coal ...
Wednesday, 11 March 09
POSCO WINS 63% CUT IN PULVERIZED COAL PRICES, MACQUARIE SAYS - BLOOMBERG
Bloomberg reported that, Posco, Asia’s third-biggest steelmaker, has settled the first pulverized coal contracts for 2009 at $90 a metric ton ...
Wednesday, 11 March 09
COAL EXPORTERS FEEL THE CHILL FROM ASIAN DOWNTURN -BUSINESS.SMH.COM
Business.smh.com reproted that, The demand for thermal coal - NSW's most valuable export - has begun to reduce dramatically in response to the need ...
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- Jorong Barutama Greston.PT - Indonesia
- Central Electricity Authority - India
- Energy Development Corp, Philippines
- Africa Commodities Group - South Africa
- Semirara Mining Corp, Philippines
- Mjunction Services Limited - India
- Sarangani Energy Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Gujarat Electricity Regulatory Commission - India
- The University of Queensland
- Bahari Cakrawala Sebuku - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Grasim Industreis Ltd - India
- Mercator Lines Limited - India
- Indonesian Coal Mining Association
- Globalindo Alam Lestari - Indonesia
- Mintek Dendrill Indonesia
- Petron Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- New Zealand Coal & Carbon
- Straits Asia Resources Limited - Singapore
- Thai Mozambique Logistica
- Planning Commission, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bukit Makmur.PT - Indonesia
- Wood Mackenzie - Singapore
- Interocean Group of Companies - India
- Alfred C Toepfer International GmbH - Germany
- Leighton Contractors Pty Ltd - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Antam Resourcindo - Indonesia
- Gujarat Sidhee Cement - India
- Ind-Barath Power Infra Limited - India
- Agrawal Coal Company - India
- Metalloyd Limited - United Kingdom
- CIMB Investment Bank - Malaysia
- India Bulls Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ministry of Finance - Indonesia
- Marubeni Corporation - India
- Orica Australia Pty. Ltd.
- Kartika Selabumi Mining - Indonesia
- Makarim & Taira - Indonesia
- Oldendorff Carriers - Singapore
- Star Paper Mills Limited - India
- Tata Chemicals Ltd - India
- Electricity Generating Authority of Thailand
- MS Steel International - UAE
- South Luzon Thermal Energy Corporation
- Neyveli Lignite Corporation Ltd, - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Medco Energi Mining Internasional
- McConnell Dowell - Australia
- Minerals Council of Australia
- The State Trading Corporation of India Ltd
- Riau Bara Harum - Indonesia
- Goldman Sachs - Singapore
- Latin American Coal - Colombia
- Bayan Resources Tbk. - Indonesia
- Australian Coal Association
- Jaiprakash Power Ventures ltd
- Karaikal Port Pvt Ltd - India
- Malabar Cements Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Deloitte Consulting - India
- Siam City Cement PLC, Thailand
- Maharashtra Electricity Regulatory Commission - India
- White Energy Company Limited
- Jindal Steel & Power Ltd - India
- Simpson Spence & Young - Indonesia
- GMR Energy Limited - India
- LBH Netherlands Bv - Netherlands
- Holcim Trading Pte Ltd - Singapore
- Standard Chartered Bank - UAE
- Toyota Tsusho Corporation, Japan
- Banpu Public Company Limited - Thailand
- Bharathi Cement Corporation - India
- Formosa Plastics Group - Taiwan
- OPG Power Generation Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Bangladesh Power Developement Board
- Posco Energy - South Korea
- GN Power Mariveles Coal Plant, Philippines
- Electricity Authority, New Zealand
- Global Business Power Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Heidelberg Cement - Germany
- Bukit Asam (Persero) Tbk - Indonesia
- Uttam Galva Steels Limited - India
- Indogreen Group - Indonesia
- SN Aboitiz Power Inc, Philippines
- Orica Mining Services - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Coal and Oil Company - UAE
- PTC India Limited - India
- Bhoruka Overseas - Indonesia
- Global Coal Blending Company Limited - Australia
- Salva Resources Pvt Ltd - India
- Anglo American - United Kingdom
- Gujarat Mineral Development Corp Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Billiton Holdings Pty Ltd - Australia
- Iligan Light & Power Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Videocon Industries ltd - India
- Baramulti Group, Indonesia
- TeaM Sual Corporation - Philippines
- Bhatia International Limited - India
- Central Java Power - Indonesia
- Price Waterhouse Coopers - Russia
- Edison Trading Spa - Italy
- Coalindo Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Renaissance Capital - South Africa
- Manunggal Multi Energi - Indonesia
- International Coal Ventures Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Carbofer General Trading SA - India
- Vedanta Resources Plc - India
- Meralco Power Generation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sical Logistics Limited - India
- Vizag Seaport Private Limited - India
- IHS Mccloskey Coal Group - USA
- Mercuria Energy - Indonesia
- The Treasury - Australian Government
- Romanian Commodities Exchange
- Rashtriya Ispat Nigam Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Cigading International Bulk Terminal - Indonesia
- Parry Sugars Refinery, India
- Kumho Petrochemical, South Korea
- Maheswari Brothers Coal Limited - India
- Aditya Birla Group - India
- Australian Commodity Traders Exchange
- Essar Steel Hazira Ltd - India
- CNBM International Corporation - China
- Kaltim Prima Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Tamil Nadu electricity Board
- Meenaskhi Energy Private Limited - India
- Timah Investasi Mineral - Indoneisa
- Barasentosa Lestari - Indonesia
- Cement Manufacturers Association - India
- PNOC Exploration Corporation - Philippines
- SMC Global Power, Philippines
- Energy Link Ltd, New Zealand
- GAC Shipping (India) Pvt Ltd
- Ministry of Transport, Egypt
- Port Waratah Coal Services - Australia
- Indika Energy - Indonesia
- Borneo Indobara - Indonesia
- Attock Cement Pakistan Limited
- ASAPP Information Group - India
- Kideco Jaya Agung - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Therma Luzon, Inc, Philippines
- Madhucon Powers Ltd - India
- Merrill Lynch Commodities Europe
- Altura Mining Limited, Indonesia
- Indian Oil Corporation Limited
- Aboitiz Power Corporation - Philippines
- Power Finance Corporation Ltd., India
- Independent Power Producers Association of India
- Sinarmas Energy and Mining - Indonesia
- Economic Council, Georgia
- AsiaOL BioFuels Corp., Philippines
- Eastern Energy - Thailand
- Bhushan Steel Limited - India
- PowerSource Philippines DevCo
- Indo Tambangraya Megah - Indonesia
- Eastern Coal Council - USA
- VISA Power Limited - India
- Chamber of Mines of South Africa
- Sakthi Sugars Limited - India
- Coastal Gujarat Power Limited - India
- Samtan Co., Ltd - South Korea
- London Commodity Brokers - England
- Indian Energy Exchange, India
- Dalmia Cement Bharat India
- Kobexindo Tractors - Indoneisa
- Siam City Cement - Thailand
- Ministry of Mines - Canada
- Sojitz Corporation - Japan
- Semirara Mining and Power Corporation, Philippines
- Larsen & Toubro Limited - India
- Rio Tinto Coal - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Georgia Ports Authority, United States
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- ICICI Bank Limited - India
- Pendopo Energi Batubara - Indonesia
- Binh Thuan Hamico - Vietnam
- Thiess Contractors Indonesia
- Singapore Mercantile Exchange
- Parliament of New Zealand
- Directorate Of Revenue Intelligence - India
- Chettinad Cement Corporation Ltd - India
- Savvy Resources Ltd - HongKong
- Ambuja Cements Ltd - India
- Xindia Steels Limited - India
- Bulk Trading Sa - Switzerland
- Directorate General of MIneral and Coal - Indonesia
- Trasteel International SA, Italy
- Commonwealth Bank - Australia
- Miang Besar Coal Terminal - Indonesia
- IEA Clean Coal Centre - UK
- Wilmar Investment Holdings
- GVK Power & Infra Limited - India
- SMG Consultants - Indonesia
- Global Green Power PLC Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Sindya Power Generating Company Private Ltd
- Lanco Infratech Ltd - India
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