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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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Friday, 13 February 09
INDONESIA IS EXPECTED TO PRODUCE 225 MILLION TONES OF COAL IN 2009 - ENERGY MINISTRY
Indonesia, the world's top thermal coal exporter, will allocate 68.3 million tonnes of coal out of expected forecast production of 225 million ton ...
Friday, 06 February 09
INDONESIA'S COAL PORTS HAVE FORCED A RETHINK ON 'TRADITIONAL' HANDLING OPTIONS
Port Strategy reported that, Indonesia’s main coal-producing islands of Kalimantan, Sulawesi and Sumatra suffer from a scarcity of suitable la ...
Thursday, 22 January 09
MINISTER: MINING LAW PROHIBITS RAW MATERIAL EXPORT - ESDM
The Coal and Mining Law, approved during the House of Representatives plenary meeting on December 16, 2008 seeks to domestically increase mining com ...
Wednesday, 07 January 09
SOUTH KALIMANTAN COAL PRODUCTION EXPECTED TO INCREASE - ESDM
Coal production from the South Kalimantan region has the potential to increase in the next few years. Aside from the vast proven reserves of coal, s ...
Tuesday, 30 November 99
GLENCORE EXPECTS 2023 TRADING UNIT PROFITS OF UP TO $4 BLN - REUTERS
Glencore GLEN.L on Friday said it expects profits at its trading division this year of up to $4 billion, exceeding its long-term annual guidance.
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- ICICI Bank Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- Bukit Makmur.PT - Indonesia
- GAC Shipping (India) Pvt Ltd
- Global Green Power PLC Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- Neyveli Lignite Corporation Ltd, - India
- Videocon Industries ltd - India
- Lanco Infratech Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Essar Steel Hazira Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Vijayanagar Sugar Pvt Ltd - India
- Coal and Oil Company - UAE
- Australian Coal Association
- India Bulls Power Limited - India
- Bangladesh Power Developement Board
- Wood Mackenzie - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Indonesian Coal Mining Association
- Bahari Cakrawala Sebuku - Indonesia
- Standard Chartered Bank - UAE
- Global Business Power Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Gujarat Mineral Development Corp Ltd - India
- Thai Mozambique Logistica
- Sical Logistics Limited - India
- Ministry of Mines - Canada
- Parliament of New Zealand
- International Coal Ventures Pvt Ltd - India
- Coalindo Energy - Indonesia
- Riau Bara Harum - Indonesia
- Barasentosa Lestari - Indonesia
- Xindia Steels Limited - India
- The Treasury - Australian Government
- VISA Power Limited - India
- Maheswari Brothers Coal Limited - India
- Directorate Of Revenue Intelligence - India
- Parry Sugars Refinery, India
- Ceylon Electricity Board - Sri Lanka
- Tata Chemicals Ltd - India
- Global Coal Blending Company Limited - Australia
- Romanian Commodities Exchange
- Binh Thuan Hamico - Vietnam
- Sakthi Sugars Limited - India
- Aboitiz Power Corporation - Philippines
- IEA Clean Coal Centre - UK
- Semirara Mining Corp, Philippines
- South Luzon Thermal Energy Corporation
- Interocean Group of Companies - India
- Kobexindo Tractors - Indoneisa
- GMR Energy Limited - India
- Central Electricity Authority - India
- Australian Commodity Traders Exchange
- Leighton Contractors Pty Ltd - Australia
- Latin American Coal - Colombia
- Marubeni Corporation - India
- Merrill Lynch Commodities Europe
- Krishnapatnam Port Company Ltd. - India
- Electricity Generating Authority of Thailand
- Oldendorff Carriers - Singapore
- Sindya Power Generating Company Private Ltd
- Bukit Baiduri Energy - Indonesia
- Sree Jayajothi Cements Limited - India
- Borneo Indobara - Indonesia
- Kideco Jaya Agung - Indonesia
- Madhucon Powers Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IHS Mccloskey Coal Group - USA
- Star Paper Mills Limited - India
- Malabar Cements Ltd - India
- TeaM Sual Corporation - Philippines
- Directorate General of MIneral and Coal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Singapore Mercantile Exchange
- Independent Power Producers Association of India
- Petron Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Goldman Sachs - Singapore
- Renaissance Capital - South Africa
- Sojitz Corporation - Japan
- Alfred C Toepfer International GmbH - Germany
- Larsen & Toubro Limited - India
- Semirara Mining and Power Corporation, Philippines
- Orica Australia Pty. Ltd.
- Coastal Gujarat Power Limited - India
- PTC India Limited - India
- Miang Besar Coal Terminal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Port Waratah Coal Services - Australia
- Jindal Steel & Power Ltd - India
- Uttam Galva Steels Limited - India
- Jaiprakash Power Ventures ltd
- Aditya Birla Group - India
- Manunggal Multi Energi - Indonesia
- Indo Tambangraya Megah - Indonesia
- Sarangani Energy Corporation, Philippines
- Mercator Lines Limited - India
- Simpson Spence & Young - Indonesia
- Altura Mining Limited, Indonesia
- Power Finance Corporation Ltd., India
- Pipit Mutiara Jaya. PT, Indonesia
- The University of Queensland
- Energy Link Ltd, New Zealand
- PetroVietnam Power Coal Import and Supply Company
- Central Java Power - Indonesia
- PNOC Exploration Corporation - Philippines
- GVK Power & Infra Limited - India
- Straits Asia Resources Limited - Singapore
- Timah Investasi Mineral - Indoneisa
- Asmin Koalindo Tuhup - Indonesia
- Medco Energi Mining Internasional
- Edison Trading Spa - Italy
- Metalloyd Limited - United Kingdom
- Indogreen Group - Indonesia
- Kumho Petrochemical, South Korea
- AsiaOL BioFuels Corp., Philippines
- Bhushan Steel Limited - India
- CNBM International Corporation - China
- Trasteel International SA, Italy
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kaltim Prima Coal - Indonesia
- Planning Commission, India
- Bulk Trading Sa - Switzerland
- Makarim & Taira - Indonesia
- The State Trading Corporation of India Ltd
- Economic Council, Georgia
- Indika Energy - Indonesia
- MS Steel International - UAE
- SMC Global Power, Philippines
- Dalmia Cement Bharat India
- McConnell Dowell - Australia
- SN Aboitiz Power Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Rio Tinto Coal - Australia
- Gujarat Electricity Regulatory Commission - India
- Ind-Barath Power Infra Limited - India
- Siam City Cement PLC, Thailand
- Globalindo Alam Lestari - Indonesia
- ASAPP Information Group - India
- Gujarat Sidhee Cement - India
- Maharashtra Electricity Regulatory Commission - India
- Grasim Industreis Ltd - India
- Intertek Mineral Services - Indonesia
- Africa Commodities Group - South Africa
- Cement Manufacturers Association - India
- Vedanta Resources Plc - India
- Salva Resources Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Banpu Public Company Limited - Thailand
- Mjunction Services Limited - India
- Georgia Ports Authority, United States
- Bhatia International Limited - India
- Mintek Dendrill Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Energy Development Corp, Philippines
- Therma Luzon, Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Kartika Selabumi Mining - Indonesia
- Bayan Resources Tbk. - Indonesia
- Minerals Council of Australia
- Siam City Cement - Thailand
- Mercuria Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Price Waterhouse Coopers - Russia
- Indian Energy Exchange, India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ambuja Cements Ltd - India
- Attock Cement Pakistan Limited
- Petrochimia International Co. Ltd.- Taiwan
- Wilmar Investment Holdings
- Karaikal Port Pvt Ltd - India
- Anglo American - United Kingdom
- Baramulti Group, Indonesia
- Kepco SPC Power Corporation, Philippines
- San Jose City I Power Corp, Philippines
- Vizag Seaport Private Limited - India
- London Commodity Brokers - England
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Chamber of Mines of South Africa
- White Energy Company Limited
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Finance - Indonesia
- Electricity Authority, New Zealand
- Ministry of Transport, Egypt
- Carbofer General Trading SA - India
- Thiess Contractors Indonesia
- Holcim Trading Pte Ltd - Singapore
- Commonwealth Bank - Australia
- Eastern Energy - Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bharathi Cement Corporation - India
- Posco Energy - South Korea
- OPG Power Generation Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Antam Resourcindo - Indonesia
- LBH Netherlands Bv - Netherlands
- Meenaskhi Energy Private Limited - India
- European Bulk Services B.V. - Netherlands
- Deloitte Consulting - India
- Savvy Resources Ltd - HongKong
- PowerSource Philippines DevCo
- New Zealand Coal & Carbon
- Samtan Co., Ltd - South Korea
- Eastern Coal Council - USA
- Bhoruka Overseas - Indonesia
- Tamil Nadu electricity Board
- Meralco Power Generation, Philippines
- Pendopo Energi Batubara - Indonesia
- Heidelberg Cement - Germany
- Agrawal Coal Company - India
- SMG Consultants - Indonesia
- Indian Oil Corporation Limited
- Chettinad Cement Corporation Ltd - India
- Orica Mining Services - Indonesia
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