We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Monday, 27 July 09
COKING COAL, IRON-ORE LIKELY TO BENEFIT NON-INTEGRATED STEEL PRODUCERS
 Economictimes reported that, The second half of the financial year 2008-09 was one of the toughest periods for steel companies, especially the non-integrated players without access to captive sources of raw material. The double whammy of falling sales realisation and higher input costs pulled down operating profit margins significantly.
The non-integrated producers continued to pay higher raw material prices as a part of long-term contracts signed during the beginning of the year. However, as old contracts have come to an end and new ones are being signed, these companies are breathing a sigh of relief.
The new contracts have taken into consideration the current market realty. The prices of two key inputs –
–iron ore and coking coal – have come down more than 50% in the spot market. As per reports, steel firms have signed long-term contracts for coking coal at around $110-120 per tonne and iron ore at $65-70 per tonne.
The new contract prices mark a decline of around two-thirds and one-third from their yearago levels for coking coal and iron ore, respectively. Steel prices have also fallen sharply during the same period. Because of these developments, it is essential to understand the impact of the new prices on the profitability of major steel producers, especially the non-integrated ones, for the next few quarters.
Steel prices in a number of countries have been regulated in past year, and India is no exception. Current international steel prices are 50% lower than year-ago levels and in India the decline has been 25-35 %. Accordingly, depending on the company’s market (domestic and overseas) exposure, the impact on profitability of new long-term contract will vary.
Going by international prices, a company with an operating margin of around 25% last year is expected to see a contraction in margin by around 1,000-1 ,300 basis points compared to year-ago levels. It means the fall in steel product prices outweighs the drop in input costs. The only solace for such a company is the improvement in margin from the previous two quarters. Sequentially, there could be an improvement of more than 500-1 ,000 basis points in the operating margin to 10-15 %.
For instance, many international steel producers reported either losses or a 5-8 % operating margin during the Mar ’09 quarter. Such companies are definitely going to see better days ahead. In India, Tata Steel, which has significant operations in Europe, is going to be one of the key beneficiaries. The operating margin of Corus, however, is not expected to exceed 2%. The new pricing will have a bigger impact on domestic companies.
Domestic steel prices have not fallen much due to government intervention and relatively higher domestic demand. Also, coking coal, which accounted for around two-thirds of raw material cost last year, has witnessed a much sharper decline in prices compared to iron ore. And most of the coking coal consumed in India is imported and its pricing depends more on the international environment rather than the domestic market. Hence new coking coal contract prices will capture the poor international market conditions.
The benefit of new long-term contracts for domestic players would depend on factors such as the extent of dependence on external suppliers for raw materials, actual contract prices and the month from which the contract became effective, among others. Higher the dependence on external suppliers, more the benefit.
Of the top five listed steel companies, JSW Steel and Ispat Industries are likely to benefit the most. The average operating margin from the September quarter onwards is expected to expand by around 1,000-1,500 basis points compared to the Mar ’09 quarter. The June quarter, however, will see a partial impact, depending on when the new contracts came into force.
Other top players that are likely to benefit are Steel Authority of India (Sail) and Jindal Steel & Power. Both of them are self-sufficient in iron ore but depend on outside suppliers for coking coal. The positive impact on the operating margin of these companies on account of the new prices would not be more than 500 basis points though.
Source: Economic Times - India Times
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Tuesday, 28 July 09
SHENZHEN ENERGY INKS COAL PURCHASE CONTRACT WITH CHINA SHENHUA
China Knowledge reported that, Shenzhen Energy Group Co Ltd has signed a five-year contract with China Shenhua Energy Co Ltd, which is engaged in th ...
Tuesday, 28 July 09
BUKIT ASAM ENJOYS STRONG FIRST HALF
The Jakarta Post reported that, state coal miner PT Tambang Batubara Bukit Asam (PTBA) enjoyed a strong first half performance with six-month net pr ...
Tuesday, 28 July 09
NEWCASTLE LOADED 1.943 MILLION TONS OF COAL IN THE WEEK ENDED 27TH JULY 2009
COALspot.com (Singapore) : The volume exported from Australia’s Newcastle port in the week ended - 07:00 hours 27 July 2009 ...
Monday, 27 July 09
INDIA PAYING HIGHEST PRICE FOR S.AFRICA COAL - PRODUCERS
* Spread between South African and Pacific origin coal very wide
* Lack of European buying makes India indicator of value
Reuters reported that, ...
Monday, 27 July 09
TAIWAN'S FORMOSA EYES S.AFRICAN COAL FOR Q4: TRADE
Reuters reported that, Taiwan's Formosa Plastics Group is looking to buy two South African thermal coal cargoes for delivery in the fourth-quarter, ...
|
|
|
Showing 6551 to 6555 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Ceylon Electricity Board - Sri Lanka
- White Energy Company Limited
- PetroVietnam Power Coal Import and Supply Company
- Africa Commodities Group - South Africa
- Mercator Lines Limited - India
- Tata Chemicals Ltd - India
- Marubeni Corporation - India
- Therma Luzon, Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- Sojitz Corporation - Japan
- Eastern Coal Council - USA
- Gujarat Sidhee Cement - India
- Maharashtra Electricity Regulatory Commission - India
- Independent Power Producers Association of India
- Meenaskhi Energy Private Limited - India
- Singapore Mercantile Exchange
- Madhucon Powers Ltd - India
- Mjunction Services Limited - India
- Petron Corporation, Philippines
- CNBM International Corporation - China
- Meralco Power Generation, Philippines
- Heidelberg Cement - Germany
- Larsen & Toubro Limited - India
- Altura Mining Limited, Indonesia
- PTC India Limited - India
- Coal and Oil Company - UAE
- Interocean Group of Companies - India
- Uttam Galva Steels Limited - India
- Miang Besar Coal Terminal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Maheswari Brothers Coal Limited - India
- Orica Mining Services - Indonesia
- Kideco Jaya Agung - Indonesia
- Vedanta Resources Plc - India
- India Bulls Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Sical Logistics Limited - India
- McConnell Dowell - Australia
- Kohat Cement Company Ltd. - Pakistan
- SN Aboitiz Power Inc, Philippines
- Carbofer General Trading SA - India
- Kaltim Prima Coal - Indonesia
- TeaM Sual Corporation - Philippines
- Port Waratah Coal Services - Australia
- Ministry of Finance - Indonesia
- Planning Commission, India
- Eastern Energy - Thailand
- Gujarat Mineral Development Corp Ltd - India
- Indian Energy Exchange, India
- Minerals Council of Australia
- Jaiprakash Power Ventures ltd
- London Commodity Brokers - England
- Offshore Bulk Terminal Pte Ltd, Singapore
- SMC Global Power, Philippines
- Baramulti Group, Indonesia
- MS Steel International - UAE
- Manunggal Multi Energi - Indonesia
- Bharathi Cement Corporation - India
- Gujarat Electricity Regulatory Commission - India
- Pendopo Energi Batubara - Indonesia
- Mintek Dendrill Indonesia
- Sree Jayajothi Cements Limited - India
- Straits Asia Resources Limited - Singapore
- Bukit Baiduri Energy - Indonesia
- Electricity Authority, New Zealand
- PowerSource Philippines DevCo
- Banpu Public Company Limited - Thailand
- Mercuria Energy - Indonesia
- Australian Commodity Traders Exchange
- Petrochimia International Co. Ltd.- Taiwan
- Ministry of Transport, Egypt
- Tamil Nadu electricity Board
- Deloitte Consulting - India
- Lanco Infratech Ltd - India
- Global Coal Blending Company Limited - Australia
- Romanian Commodities Exchange
- Semirara Mining and Power Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Electricity Generating Authority of Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Malabar Cements Ltd - India
- Oldendorff Carriers - Singapore
- Semirara Mining Corp, Philippines
- Videocon Industries ltd - India
- Energy Link Ltd, New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- VISA Power Limited - India
- Directorate Of Revenue Intelligence - India
- SMG Consultants - Indonesia
- Merrill Lynch Commodities Europe
- Anglo American - United Kingdom
- Iligan Light & Power Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Central Java Power - Indonesia
- LBH Netherlands Bv - Netherlands
- European Bulk Services B.V. - Netherlands
- Indogreen Group - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Trasteel International SA, Italy
- Ministry of Mines - Canada
- Orica Australia Pty. Ltd.
- Energy Development Corp, Philippines
- Rashtriya Ispat Nigam Limited - India
- Kartika Selabumi Mining - Indonesia
- Riau Bara Harum - Indonesia
- Australian Coal Association
- Bhushan Steel Limited - India
- Thiess Contractors Indonesia
- Bhatia International Limited - India
- Thai Mozambique Logistica
- OPG Power Generation Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Central Electricity Authority - India
- Bukit Asam (Persero) Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- Chamber of Mines of South Africa
- Makarim & Taira - Indonesia
- Attock Cement Pakistan Limited
- Parliament of New Zealand
- Bukit Makmur.PT - Indonesia
- Xindia Steels Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Binh Thuan Hamico - Vietnam
- Wood Mackenzie - Singapore
- Ambuja Cements Ltd - India
- Coastal Gujarat Power Limited - India
- Kepco SPC Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Indika Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- IEA Clean Coal Centre - UK
- Wilmar Investment Holdings
- GAC Shipping (India) Pvt Ltd
- Latin American Coal - Colombia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- ICICI Bank Limited - India
- Timah Investasi Mineral - Indoneisa
- AsiaOL BioFuels Corp., Philippines
- Ind-Barath Power Infra Limited - India
- GMR Energy Limited - India
- Savvy Resources Ltd - HongKong
- GVK Power & Infra Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Global Business Power Corporation, Philippines
- Power Finance Corporation Ltd., India
- Krishnapatnam Port Company Ltd. - India
- Kobexindo Tractors - Indoneisa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Agrawal Coal Company - India
- Dalmia Cement Bharat India
- IHS Mccloskey Coal Group - USA
- Globalindo Alam Lestari - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Kumho Petrochemical, South Korea
- Indonesian Coal Mining Association
- Bangladesh Power Developement Board
- Holcim Trading Pte Ltd - Singapore
- Aditya Birla Group - India
- Borneo Indobara - Indonesia
- The Treasury - Australian Government
- San Jose City I Power Corp, Philippines
- Bhoruka Overseas - Indonesia
- Bulk Trading Sa - Switzerland
- Rio Tinto Coal - Australia
- Coalindo Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Global Green Power PLC Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Vizag Seaport Private Limited - India
- Essar Steel Hazira Ltd - India
- Cement Manufacturers Association - India
- Bahari Cakrawala Sebuku - Indonesia
- Commonwealth Bank - Australia
- Star Paper Mills Limited - India
- Indo Tambangraya Megah - Indonesia
- Parry Sugars Refinery, India
- Metalloyd Limited - United Kingdom
- New Zealand Coal & Carbon
- Renaissance Capital - South Africa
- Chettinad Cement Corporation Ltd - India
- South Luzon Thermal Energy Corporation
- Karbindo Abesyapradhi - Indoneisa
- Leighton Contractors Pty Ltd - Australia
- CIMB Investment Bank - Malaysia
- Siam City Cement PLC, Thailand
- Edison Trading Spa - Italy
- Cigading International Bulk Terminal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Goldman Sachs - Singapore
- Barasentosa Lestari - Indonesia
- ASAPP Information Group - India
- Posco Energy - South Korea
- Formosa Plastics Group - Taiwan
- Price Waterhouse Coopers - Russia
- Siam City Cement - Thailand
- Medco Energi Mining Internasional
- Antam Resourcindo - Indonesia
- Indian Oil Corporation Limited
- International Coal Ventures Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Samtan Co., Ltd - South Korea
- Toyota Tsusho Corporation, Japan
- Georgia Ports Authority, United States
- Simpson Spence & Young - Indonesia
- The University of Queensland
- Economic Council, Georgia
- Sakthi Sugars Limited - India
- Grasim Industreis Ltd - India
- Standard Chartered Bank - UAE
- Jindal Steel & Power Ltd - India
|
| |
| |
|
