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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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Wednesday, 28 October 09
MIDDLE EAST COAL EYEING INDIAN POWER PLANTS IN EXCHANGE FOR LONG TERM COAL SUPPLY
Reuters reported that UAE's Middle East Coal is in talks to buy equity stakes in India's power plants in exchange for long term coal supply.
ME ...
Wednesday, 28 October 09
INVESTMENT IN MINING SECTOR HAMPERED BY LATE REGULATIONS
The Jakarta Post reported that, Indonesia may have to wait for a potential massive inflow of new investment into the mining sector due to delays in ...
Tuesday, 27 October 09
CHINA'S SEPT. COAL IMPORTS RISE AS ECONOMY RECOVERS
Bloomberg reported that, China, the world’s largest coal user and producer, increased imports of the fuel in September to meet rising domest ...
Monday, 26 October 09
DARWIN EYES PRIVATE INVESTMENT
The Jakarta Post reported that, the new energy and ministerial resources minister, Darwin Zahedy Saleh, has set his sights on accelerating the reali ...
Sunday, 25 October 09
THE FUTURE FREIGHT MARKET IS EXPECTED TO HAVE POSITIVE DIRECTION - VISTAAR
COALspot.com (Singapore): According to Vistaar Shipping an experienced ship operator in Singapore, the BDI shot up this week (19-24 October) by abou ...
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- Metalloyd Limited - United Kingdom
- Cement Manufacturers Association - India
- Alfred C Toepfer International GmbH - Germany
- Attock Cement Pakistan Limited
- Aditya Birla Group - India
- Antam Resourcindo - Indonesia
- Minerals Council of Australia
- Singapore Mercantile Exchange
- Borneo Indobara - Indonesia
- IEA Clean Coal Centre - UK
- Banpu Public Company Limited - Thailand
- Commonwealth Bank - Australia
- Videocon Industries ltd - India
- Price Waterhouse Coopers - Russia
- GAC Shipping (India) Pvt Ltd
- Chamber of Mines of South Africa
- Bulk Trading Sa - Switzerland
- Africa Commodities Group - South Africa
- ICICI Bank Limited - India
- Gujarat Sidhee Cement - India
- Oldendorff Carriers - Singapore
- Binh Thuan Hamico - Vietnam
- Mercator Lines Limited - India
- Eastern Energy - Thailand
- Essar Steel Hazira Ltd - India
- Economic Council, Georgia
- Xindia Steels Limited - India
- Power Finance Corporation Ltd., India
- Riau Bara Harum - Indonesia
- Tamil Nadu electricity Board
- Ministry of Transport, Egypt
- IHS Mccloskey Coal Group - USA
- Neyveli Lignite Corporation Ltd, - India
- Jorong Barutama Greston.PT - Indonesia
- Posco Energy - South Korea
- Independent Power Producers Association of India
- Central Electricity Authority - India
- Marubeni Corporation - India
- Petrochimia International Co. Ltd.- Taiwan
- Central Java Power - Indonesia
- Sindya Power Generating Company Private Ltd
- Cigading International Bulk Terminal - Indonesia
- Port Waratah Coal Services - Australia
- New Zealand Coal & Carbon
- Bharathi Cement Corporation - India
- Kumho Petrochemical, South Korea
- SMC Global Power, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Globalindo Alam Lestari - Indonesia
- Sojitz Corporation - Japan
- Siam City Cement - Thailand
- Bhatia International Limited - India
- AsiaOL BioFuels Corp., Philippines
- Sinarmas Energy and Mining - Indonesia
- CNBM International Corporation - China
- Orica Australia Pty. Ltd.
- Altura Mining Limited, Indonesia
- Meralco Power Generation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Maheswari Brothers Coal Limited - India
- Straits Asia Resources Limited - Singapore
- Edison Trading Spa - Italy
- OPG Power Generation Pvt Ltd - India
- SMG Consultants - Indonesia
- Carbofer General Trading SA - India
- Standard Chartered Bank - UAE
- Holcim Trading Pte Ltd - Singapore
- Orica Mining Services - Indonesia
- Bhushan Steel Limited - India
- Renaissance Capital - South Africa
- PNOC Exploration Corporation - Philippines
- The State Trading Corporation of India Ltd
- Global Business Power Corporation, Philippines
- Indogreen Group - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- PetroVietnam Power Coal Import and Supply Company
- Gujarat Mineral Development Corp Ltd - India
- Agrawal Coal Company - India
- Karbindo Abesyapradhi - Indoneisa
- Thiess Contractors Indonesia
- GMR Energy Limited - India
- Energy Development Corp, Philippines
- LBH Netherlands Bv - Netherlands
- Bangladesh Power Developement Board
- Directorate Of Revenue Intelligence - India
- Madhucon Powers Ltd - India
- The Treasury - Australian Government
- Offshore Bulk Terminal Pte Ltd, Singapore
- Global Coal Blending Company Limited - Australia
- Interocean Group of Companies - India
- Petron Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Uttam Galva Steels Limited - India
- Barasentosa Lestari - Indonesia
- Aboitiz Power Corporation - Philippines
- Sree Jayajothi Cements Limited - India
- Simpson Spence & Young - Indonesia
- Planning Commission, India
- Larsen & Toubro Limited - India
- Australian Commodity Traders Exchange
- Gujarat Electricity Regulatory Commission - India
- Vedanta Resources Plc - India
- Krishnapatnam Port Company Ltd. - India
- Wilmar Investment Holdings
- Semirara Mining and Power Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Energy Link Ltd, New Zealand
- Coastal Gujarat Power Limited - India
- South Luzon Thermal Energy Corporation
- SN Aboitiz Power Inc, Philippines
- Iligan Light & Power Inc, Philippines
- Makarim & Taira - Indonesia
- Electricity Generating Authority of Thailand
- Baramulti Group, Indonesia
- McConnell Dowell - Australia
- Asmin Koalindo Tuhup - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- San Jose City I Power Corp, Philippines
- Salva Resources Pvt Ltd - India
- Ambuja Cements Ltd - India
- CIMB Investment Bank - Malaysia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Leighton Contractors Pty Ltd - Australia
- Grasim Industreis Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Rashtriya Ispat Nigam Limited - India
- Sakthi Sugars Limited - India
- Ceylon Electricity Board - Sri Lanka
- Jindal Steel & Power Ltd - India
- Intertek Mineral Services - Indonesia
- Mercuria Energy - Indonesia
- Wood Mackenzie - Singapore
- Bhoruka Overseas - Indonesia
- Billiton Holdings Pty Ltd - Australia
- White Energy Company Limited
- Vizag Seaport Private Limited - India
- Sical Logistics Limited - India
- Medco Energi Mining Internasional
- Latin American Coal - Colombia
- Sarangani Energy Corporation, Philippines
- Heidelberg Cement - Germany
- London Commodity Brokers - England
- Meenaskhi Energy Private Limited - India
- Ind-Barath Power Infra Limited - India
- Semirara Mining Corp, Philippines
- Rio Tinto Coal - Australia
- MS Steel International - UAE
- Vijayanagar Sugar Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Georgia Ports Authority, United States
- Therma Luzon, Inc, Philippines
- GVK Power & Infra Limited - India
- Bukit Baiduri Energy - Indonesia
- The University of Queensland
- Samtan Co., Ltd - South Korea
- Malabar Cements Ltd - India
- Mjunction Services Limited - India
- Coalindo Energy - Indonesia
- Merrill Lynch Commodities Europe
- Global Green Power PLC Corporation, Philippines
- PTC India Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Eastern Coal Council - USA
- TeaM Sual Corporation - Philippines
- Deloitte Consulting - India
- Miang Besar Coal Terminal - Indonesia
- Coal and Oil Company - UAE
- Bukit Asam (Persero) Tbk - Indonesia
- Indian Oil Corporation Limited
- Goldman Sachs - Singapore
- PowerSource Philippines DevCo
- Directorate General of MIneral and Coal - Indonesia
- Manunggal Multi Energi - Indonesia
- Mintek Dendrill Indonesia
- Bukit Makmur.PT - Indonesia
- Romanian Commodities Exchange
- Star Paper Mills Limited - India
- Jaiprakash Power Ventures ltd
- ASAPP Information Group - India
- Indo Tambangraya Megah - Indonesia
- Pendopo Energi Batubara - Indonesia
- Timah Investasi Mineral - Indoneisa
- Indonesian Coal Mining Association
- Formosa Plastics Group - Taiwan
- Thai Mozambique Logistica
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Trasteel International SA, Italy
- Parliament of New Zealand
- Dalmia Cement Bharat India
- Pipit Mutiara Jaya. PT, Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Finance - Indonesia
- Anglo American - United Kingdom
- Maharashtra Electricity Regulatory Commission - India
- Tata Chemicals Ltd - India
- Electricity Authority, New Zealand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- India Bulls Power Limited - India
- Parry Sugars Refinery, India
- Australian Coal Association
- Ministry of Mines - Canada
- VISA Power Limited - India
- Lanco Infratech Ltd - India
- Siam City Cement PLC, Thailand
- European Bulk Services B.V. - Netherlands
- Bayan Resources Tbk. - Indonesia
- Toyota Tsusho Corporation, Japan
- Indian Energy Exchange, India
- Kaltim Prima Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Indika Energy - Indonesia
- Kideco Jaya Agung - Indonesia
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