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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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Sunday, 08 March 09
AUSTRALIA'S FELIX STUDYING COAL ACQUISITIONS IN INDIA, INDONESIA
Bloomberg reported that, Felix Resources Ltd., an Australian supplier of coal to Korea and Japan, is studying acquisitions of energy coal assets in ...
Saturday, 07 March 09
THERMAL COAL PRICES MAY DROP, STANDARD CHARTERED SAYS
Bloomberg reported that, Coal prices may decline as a slump in demand for the fuel outpaces cuts in production, Standard Chartered Plc said.
Exp ...
Friday, 06 March 09
STRAITS ASIA EYES 3RD MINE
Straitstimes reported that, Mining company Straits Asia Resources is on an expansion trail to more than double its output by 2012.
Amid the econo ...
Friday, 06 March 09
INDONESIA MAY MISS 2009 COAL OUTPUT TARGET-OFFICIAL
Indonesia, the world's top thermal coal exporter, may fail to achieve its coal production target this year as the global economic crisis dents dema ...
Friday, 06 March 09
POWER FIRMS HEAD TO INDONESIA FOR COAL
The Hindu Businessline reported that, The enactment of a new, more liberal, mining legislation in Indonesia is drawing coal-starved Indian power uti ...
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- The Treasury - Australian Government
- ASAPP Information Group - India
- Commonwealth Bank - Australia
- Kobexindo Tractors - Indoneisa
- Directorate General of MIneral and Coal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Vedanta Resources Plc - India
- IEA Clean Coal Centre - UK
- Sarangani Energy Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Barasentosa Lestari - Indonesia
- Medco Energi Mining Internasional
- GMR Energy Limited - India
- Kaltim Prima Coal - Indonesia
- Sakthi Sugars Limited - India
- AsiaOL BioFuels Corp., Philippines
- Electricity Generating Authority of Thailand
- Petron Corporation, Philippines
- Agrawal Coal Company - India
- Pipit Mutiara Jaya. PT, Indonesia
- Siam City Cement - Thailand
- Borneo Indobara - Indonesia
- Malabar Cements Ltd - India
- OPG Power Generation Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Xindia Steels Limited - India
- New Zealand Coal & Carbon
- LBH Netherlands Bv - Netherlands
- Aditya Birla Group - India
- Economic Council, Georgia
- Directorate Of Revenue Intelligence - India
- GVK Power & Infra Limited - India
- Karaikal Port Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Jindal Steel & Power Ltd - India
- Australian Commodity Traders Exchange
- Chamber of Mines of South Africa
- Riau Bara Harum - Indonesia
- Anglo American - United Kingdom
- Indogreen Group - Indonesia
- Bayan Resources Tbk. - Indonesia
- Grasim Industreis Ltd - India
- South Luzon Thermal Energy Corporation
- Binh Thuan Hamico - Vietnam
- Vizag Seaport Private Limited - India
- Bharathi Cement Corporation - India
- White Energy Company Limited
- Manunggal Multi Energi - Indonesia
- Energy Development Corp, Philippines
- Attock Cement Pakistan Limited
- The University of Queensland
- Oldendorff Carriers - Singapore
- Simpson Spence & Young - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Baiduri Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- SMC Global Power, Philippines
- Kumho Petrochemical, South Korea
- McConnell Dowell - Australia
- Antam Resourcindo - Indonesia
- Port Waratah Coal Services - Australia
- Africa Commodities Group - South Africa
- Salva Resources Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Samtan Co., Ltd - South Korea
- Indika Energy - Indonesia
- London Commodity Brokers - England
- Jorong Barutama Greston.PT - Indonesia
- Semirara Mining Corp, Philippines
- Videocon Industries ltd - India
- CNBM International Corporation - China
- Minerals Council of Australia
- Essar Steel Hazira Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Leighton Contractors Pty Ltd - Australia
- Asmin Koalindo Tuhup - Indonesia
- Straits Asia Resources Limited - Singapore
- Bhushan Steel Limited - India
- Rashtriya Ispat Nigam Limited - India
- Bulk Trading Sa - Switzerland
- Rio Tinto Coal - Australia
- Merrill Lynch Commodities Europe
- Central Java Power - Indonesia
- Bukit Makmur.PT - Indonesia
- Independent Power Producers Association of India
- Deloitte Consulting - India
- Bhatia International Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Coalindo Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Banpu Public Company Limited - Thailand
- Mjunction Services Limited - India
- Larsen & Toubro Limited - India
- Parliament of New Zealand
- GN Power Mariveles Coal Plant, Philippines
- TeaM Sual Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- International Coal Ventures Pvt Ltd - India
- VISA Power Limited - India
- The State Trading Corporation of India Ltd
- Ministry of Finance - Indonesia
- Indian Energy Exchange, India
- Interocean Group of Companies - India
- Globalindo Alam Lestari - Indonesia
- Dalmia Cement Bharat India
- Gujarat Sidhee Cement - India
- Kohat Cement Company Ltd. - Pakistan
- Baramulti Group, Indonesia
- Wilmar Investment Holdings
- Standard Chartered Bank - UAE
- Cement Manufacturers Association - India
- Energy Link Ltd, New Zealand
- PowerSource Philippines DevCo
- San Jose City I Power Corp, Philippines
- Sical Logistics Limited - India
- Coal and Oil Company - UAE
- Global Coal Blending Company Limited - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Latin American Coal - Colombia
- Makarim & Taira - Indonesia
- Planning Commission, India
- Ministry of Mines - Canada
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coastal Gujarat Power Limited - India
- Price Waterhouse Coopers - Russia
- Star Paper Mills Limited - India
- Savvy Resources Ltd - HongKong
- Kartika Selabumi Mining - Indonesia
- Ambuja Cements Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Trasteel International SA, Italy
- European Bulk Services B.V. - Netherlands
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Goldman Sachs - Singapore
- Global Business Power Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Marubeni Corporation - India
- MS Steel International - UAE
- Heidelberg Cement - Germany
- Kapuas Tunggal Persada - Indonesia
- IHS Mccloskey Coal Group - USA
- Iligan Light & Power Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- Kideco Jaya Agung - Indonesia
- Ministry of Transport, Egypt
- CIMB Investment Bank - Malaysia
- Altura Mining Limited, Indonesia
- Indo Tambangraya Megah - Indonesia
- Kepco SPC Power Corporation, Philippines
- Meralco Power Generation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Wood Mackenzie - Singapore
- Romanian Commodities Exchange
- Orica Australia Pty. Ltd.
- Sree Jayajothi Cements Limited - India
- Jaiprakash Power Ventures ltd
- Parry Sugars Refinery, India
- SMG Consultants - Indonesia
- Mercuria Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Singapore Mercantile Exchange
- Intertek Mineral Services - Indonesia
- Georgia Ports Authority, United States
- Krishnapatnam Port Company Ltd. - India
- Renaissance Capital - South Africa
- Sinarmas Energy and Mining - Indonesia
- Sindya Power Generating Company Private Ltd
- PetroVietnam Power Coal Import and Supply Company
- Ceylon Electricity Board - Sri Lanka
- Tata Chemicals Ltd - India
- Eastern Energy - Thailand
- Mercator Lines Limited - India
- Central Electricity Authority - India
- Maharashtra Electricity Regulatory Commission - India
- Meenaskhi Energy Private Limited - India
- Posco Energy - South Korea
- Semirara Mining and Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Thai Mozambique Logistica
- Maheswari Brothers Coal Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Australian Coal Association
- Tamil Nadu electricity Board
- Toyota Tsusho Corporation, Japan
- Bangladesh Power Developement Board
- Pendopo Energi Batubara - Indonesia
- Indonesian Coal Mining Association
- India Bulls Power Limited - India
- Kalimantan Lumbung Energi - Indonesia
- PTC India Limited - India
- Madhucon Powers Ltd - India
- Mintek Dendrill Indonesia
- Metalloyd Limited - United Kingdom
- Sojitz Corporation - Japan
- Thiess Contractors Indonesia
- Cigading International Bulk Terminal - Indonesia
- Lanco Infratech Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Carbofer General Trading SA - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Uttam Galva Steels Limited - India
- Eastern Coal Council - USA
- Ind-Barath Power Infra Limited - India
- Indian Oil Corporation Limited
- ICICI Bank Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Electricity Authority, New Zealand
- Chettinad Cement Corporation Ltd - India
- Orica Mining Services - Indonesia
- Edison Trading Spa - Italy
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