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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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Saturday, 31 October 09
PRODUCERS BENEFIT FROM COAL'S TIGHT SUPPLY AND STRONG DEMAND
The Jakarta Post reported that, The outlook for Indonesian coal producers appears promising with strong volume growth coming from both the domestic ...
Saturday, 31 October 09
FLSMIDTH WINS MAJOR INDIAN COAL HANDLING PROJECT
Top global supplier of minerals processing and materials handling equipment, FL smidth, has won another important coal handling contract in India
...
Saturday, 31 October 09
INDIA OPENING POWER SECTOR TO PRIVATE INVESTMENT, COAL STILL THE FUEL OF CHOICE
Energy Tribune reported that, With coal-fired power plants as the primary source, India’s electricity generation sector space has been dominat ...
Friday, 30 October 09
MINERS TOLD TO SPEND ON LOCAL SERVICE FIRMS
The energy and mineral resources ministry has issued a ministerial regulation ordering mining firms to prioritize hiring domestic service companies ...
Friday, 30 October 09
TATA POWER MAY BUY COAL FROM RIVERSDALE'S MOZAMBIQUE MINES
Bloomberg reported that, Tata Power Ltd., India’s biggest electricity generator outside state control, may buy coal from a mine in Mozambique ...
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- Aditya Birla Group - India
- Parry Sugars Refinery, India
- TNB Fuel Sdn Bhd - Malaysia
- Salva Resources Pvt Ltd - India
- Marubeni Corporation - India
- Asmin Koalindo Tuhup - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- VISA Power Limited - India
- Bhushan Steel Limited - India
- Sakthi Sugars Limited - India
- Rio Tinto Coal - Australia
- Posco Energy - South Korea
- Heidelberg Cement - Germany
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Essar Steel Hazira Ltd - India
- Ambuja Cements Ltd - India
- Malabar Cements Ltd - India
- Sarangani Energy Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- Alfred C Toepfer International GmbH - Germany
- Eastern Coal Council - USA
- Edison Trading Spa - Italy
- Ceylon Electricity Board - Sri Lanka
- Coastal Gujarat Power Limited - India
- Riau Bara Harum - Indonesia
- Planning Commission, India
- IHS Mccloskey Coal Group - USA
- Formosa Plastics Group - Taiwan
- San Jose City I Power Corp, Philippines
- Siam City Cement - Thailand
- Meenaskhi Energy Private Limited - India
- Tamil Nadu electricity Board
- Global Business Power Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Wood Mackenzie - Singapore
- Tata Chemicals Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Renaissance Capital - South Africa
- Indogreen Group - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Neyveli Lignite Corporation Ltd, - India
- PowerSource Philippines DevCo
- Banpu Public Company Limited - Thailand
- Australian Commodity Traders Exchange
- Global Coal Blending Company Limited - Australia
- Petrochimia International Co. Ltd.- Taiwan
- CNBM International Corporation - China
- Samtan Co., Ltd - South Korea
- Minerals Council of Australia
- Karaikal Port Pvt Ltd - India
- GVK Power & Infra Limited - India
- Mintek Dendrill Indonesia
- Directorate Of Revenue Intelligence - India
- Maharashtra Electricity Regulatory Commission - India
- Star Paper Mills Limited - India
- Bulk Trading Sa - Switzerland
- Borneo Indobara - Indonesia
- Vizag Seaport Private Limited - India
- PNOC Exploration Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Trasteel International SA, Italy
- Antam Resourcindo - Indonesia
- Carbofer General Trading SA - India
- Indian Oil Corporation Limited
- White Energy Company Limited
- Kartika Selabumi Mining - Indonesia
- Thiess Contractors Indonesia
- Bukit Baiduri Energy - Indonesia
- Orica Mining Services - Indonesia
- Bharathi Cement Corporation - India
- Indo Tambangraya Megah - Indonesia
- Deloitte Consulting - India
- Medco Energi Mining Internasional
- Toyota Tsusho Corporation, Japan
- Bhoruka Overseas - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Videocon Industries ltd - India
- Krishnapatnam Port Company Ltd. - India
- Bahari Cakrawala Sebuku - Indonesia
- Baramulti Group, Indonesia
- Petron Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Orica Australia Pty. Ltd.
- SMG Consultants - Indonesia
- Therma Luzon, Inc, Philippines
- Kumho Petrochemical, South Korea
- Madhucon Powers Ltd - India
- OPG Power Generation Pvt Ltd - India
- Merrill Lynch Commodities Europe
- McConnell Dowell - Australia
- Mercuria Energy - Indonesia
- Jaiprakash Power Ventures ltd
- ICICI Bank Limited - India
- Price Waterhouse Coopers - Russia
- Dalmia Cement Bharat India
- Jindal Steel & Power Ltd - India
- CIMB Investment Bank - Malaysia
- Electricity Generating Authority of Thailand
- New Zealand Coal & Carbon
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Gujarat Sidhee Cement - India
- Wilmar Investment Holdings
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The Treasury - Australian Government
- Holcim Trading Pte Ltd - Singapore
- Meralco Power Generation, Philippines
- Coalindo Energy - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Singapore Mercantile Exchange
- Ministry of Transport, Egypt
- Ministry of Finance - Indonesia
- Iligan Light & Power Inc, Philippines
- ASAPP Information Group - India
- Kohat Cement Company Ltd. - Pakistan
- Leighton Contractors Pty Ltd - Australia
- Kepco SPC Power Corporation, Philippines
- Vedanta Resources Plc - India
- Interocean Group of Companies - India
- India Bulls Power Limited - India
- Maheswari Brothers Coal Limited - India
- Georgia Ports Authority, United States
- Economic Council, Georgia
- SMC Global Power, Philippines
- Africa Commodities Group - South Africa
- PTC India Limited - India
- Timah Investasi Mineral - Indoneisa
- Karbindo Abesyapradhi - Indoneisa
- Binh Thuan Hamico - Vietnam
- Sojitz Corporation - Japan
- Gujarat Mineral Development Corp Ltd - India
- Rashtriya Ispat Nigam Limited - India
- MS Steel International - UAE
- Offshore Bulk Terminal Pte Ltd, Singapore
- The State Trading Corporation of India Ltd
- Lanco Infratech Ltd - India
- Semirara Mining and Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Indonesian Coal Mining Association
- Kideco Jaya Agung - Indonesia
- Savvy Resources Ltd - HongKong
- Gujarat Electricity Regulatory Commission - India
- LBH Netherlands Bv - Netherlands
- Kalimantan Lumbung Energi - Indonesia
- Xindia Steels Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Kobexindo Tractors - Indoneisa
- Energy Development Corp, Philippines
- Manunggal Multi Energi - Indonesia
- London Commodity Brokers - England
- Latin American Coal - Colombia
- Romanian Commodities Exchange
- Cement Manufacturers Association - India
- Billiton Holdings Pty Ltd - Australia
- Straits Asia Resources Limited - Singapore
- Chamber of Mines of South Africa
- European Bulk Services B.V. - Netherlands
- Pendopo Energi Batubara - Indonesia
- GMR Energy Limited - India
- Agrawal Coal Company - India
- Energy Link Ltd, New Zealand
- The University of Queensland
- Commonwealth Bank - Australia
- Simpson Spence & Young - Indonesia
- Siam City Cement PLC, Thailand
- Uttam Galva Steels Limited - India
- Miang Besar Coal Terminal - Indonesia
- Ind-Barath Power Infra Limited - India
- Australian Coal Association
- Chettinad Cement Corporation Ltd - India
- Parliament of New Zealand
- Sree Jayajothi Cements Limited - India
- Power Finance Corporation Ltd., India
- Indika Energy - Indonesia
- Standard Chartered Bank - UAE
- Independent Power Producers Association of India
- Central Electricity Authority - India
- Kapuas Tunggal Persada - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Electricity Authority, New Zealand
- South Luzon Thermal Energy Corporation
- Intertek Mineral Services - Indonesia
- Metalloyd Limited - United Kingdom
- Thai Mozambique Logistica
- Grasim Industreis Ltd - India
- Sical Logistics Limited - India
- Port Waratah Coal Services - Australia
- Bayan Resources Tbk. - Indonesia
- Bhatia International Limited - India
- IEA Clean Coal Centre - UK
- Mjunction Services Limited - India
- Goldman Sachs - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Attock Cement Pakistan Limited
- Oldendorff Carriers - Singapore
- Altura Mining Limited, Indonesia
- Mercator Lines Limited - India
- Barasentosa Lestari - Indonesia
- Eastern Energy - Thailand
- Coal and Oil Company - UAE
- Bangladesh Power Developement Board
- Larsen & Toubro Limited - India
- Indian Energy Exchange, India
- Anglo American - United Kingdom
- Bukit Makmur.PT - Indonesia
- Semirara Mining Corp, Philippines
- TeaM Sual Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
- Central Java Power - Indonesia
- Makarim & Taira - Indonesia
- Kaltim Prima Coal - Indonesia
- Aboitiz Power Corporation - Philippines
- Ministry of Mines - Canada
- Globalindo Alam Lestari - Indonesia
- International Coal Ventures Pvt Ltd - India
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