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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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Tuesday, 20 October 09
COAL PRICES TO SURGE IN 2010 DESPITE AMPLE SUPPLY
Commodity Online reported that, Coal prices are indeed destined to go higher as they follow the rise of ‘coal currencies’ such as Austra ...
Tuesday, 20 October 09
INDIA MAY CUT STAKE IN NTPC BY DECEMBER, POWER SECRETARY SAYS
Bloomberg reported that, India’s government may sell a 5 percent stake in NTPC Ltd., the country’s biggest power producer, as early as D ...
Monday, 19 October 09
COAL PRICE UP AGAIN - RICHARDS BAY TERMINAL
Export prices rose 45 cents, or 0.7%, to an average of 64.05 a metric ton in the week ended Oct. 16, according to McCloskey Group.
The week was & ...
Monday, 19 October 09
COAL MINISTRY SEEKS EXPLANATION FROM AP GENCO
The Hindu Business reported that, the Coal Ministry has asked the Power Generation Corporation of Andhra Pradesh (AP Genco) to explain why there was ...
Monday, 19 October 09
CEMENT UNLIKELY TO COST MORE DESPITE COAL PRICE HIKE
Business-Standard reported that, Cement manufacturers will not immediately hike prices of the construction material, despite a surge in their input ...
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- Merrill Lynch Commodities Europe
- Semirara Mining Corp, Philippines
- Grasim Industreis Ltd - India
- Timah Investasi Mineral - Indoneisa
- Vijayanagar Sugar Pvt Ltd - India
- Central Electricity Authority - India
- Bharathi Cement Corporation - India
- Deloitte Consulting - India
- TNB Fuel Sdn Bhd - Malaysia
- Latin American Coal - Colombia
- Chamber of Mines of South Africa
- Salva Resources Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Leighton Contractors Pty Ltd - Australia
- MS Steel International - UAE
- Intertek Mineral Services - Indonesia
- Energy Development Corp, Philippines
- Africa Commodities Group - South Africa
- IEA Clean Coal Centre - UK
- Directorate General of MIneral and Coal - Indonesia
- Jaiprakash Power Ventures ltd
- Rio Tinto Coal - Australia
- Planning Commission, India
- Australian Coal Association
- Billiton Holdings Pty Ltd - Australia
- Aditya Birla Group - India
- Indogreen Group - Indonesia
- Goldman Sachs - Singapore
- European Bulk Services B.V. - Netherlands
- Australian Commodity Traders Exchange
- Interocean Group of Companies - India
- Eastern Energy - Thailand
- Central Java Power - Indonesia
- Sojitz Corporation - Japan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Petron Corporation, Philippines
- Coastal Gujarat Power Limited - India
- White Energy Company Limited
- Heidelberg Cement - Germany
- Pipit Mutiara Jaya. PT, Indonesia
- Global Business Power Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Dalmia Cement Bharat India
- Carbofer General Trading SA - India
- Orica Mining Services - Indonesia
- Siam City Cement - Thailand
- Therma Luzon, Inc, Philippines
- Jindal Steel & Power Ltd - India
- The State Trading Corporation of India Ltd
- Economic Council, Georgia
- Ind-Barath Power Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Vizag Seaport Private Limited - India
- Power Finance Corporation Ltd., India
- Bank of Tokyo Mitsubishi UFJ Ltd
- McConnell Dowell - Australia
- Kalimantan Lumbung Energi - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bukit Baiduri Energy - Indonesia
- TeaM Sual Corporation - Philippines
- Energy Link Ltd, New Zealand
- Videocon Industries ltd - India
- OPG Power Generation Pvt Ltd - India
- Marubeni Corporation - India
- Parry Sugars Refinery, India
- Kapuas Tunggal Persada - Indonesia
- Meenaskhi Energy Private Limited - India
- Singapore Mercantile Exchange
- Bukit Asam (Persero) Tbk - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Tamil Nadu electricity Board
- London Commodity Brokers - England
- Manunggal Multi Energi - Indonesia
- Kepco SPC Power Corporation, Philippines
- Thiess Contractors Indonesia
- The Treasury - Australian Government
- Indian Oil Corporation Limited
- Malabar Cements Ltd - India
- Independent Power Producers Association of India
- Savvy Resources Ltd - HongKong
- Global Coal Blending Company Limited - Australia
- GVK Power & Infra Limited - India
- Electricity Generating Authority of Thailand
- Kobexindo Tractors - Indoneisa
- Globalindo Alam Lestari - Indonesia
- Barasentosa Lestari - Indonesia
- Sarangani Energy Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Holcim Trading Pte Ltd - Singapore
- GMR Energy Limited - India
- Ministry of Finance - Indonesia
- Coal and Oil Company - UAE
- Bhoruka Overseas - Indonesia
- Bulk Trading Sa - Switzerland
- Banpu Public Company Limited - Thailand
- Kumho Petrochemical, South Korea
- Indika Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kideco Jaya Agung - Indonesia
- Wood Mackenzie - Singapore
- VISA Power Limited - India
- PowerSource Philippines DevCo
- Riau Bara Harum - Indonesia
- Tata Chemicals Ltd - India
- PTC India Limited - India
- Makarim & Taira - Indonesia
- Kartika Selabumi Mining - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Sidhee Cement - India
- Mintek Dendrill Indonesia
- ICICI Bank Limited - India
- India Bulls Power Limited - India
- Global Green Power PLC Corporation, Philippines
- ASAPP Information Group - India
- GN Power Mariveles Coal Plant, Philippines
- Altura Mining Limited, Indonesia
- Binh Thuan Hamico - Vietnam
- Bhatia International Limited - India
- Parliament of New Zealand
- Mercuria Energy - Indonesia
- Meralco Power Generation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Directorate Of Revenue Intelligence - India
- Semirara Mining and Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Bhushan Steel Limited - India
- The University of Queensland
- Kohat Cement Company Ltd. - Pakistan
- Metalloyd Limited - United Kingdom
- Maharashtra Electricity Regulatory Commission - India
- Bahari Cakrawala Sebuku - Indonesia
- Straits Asia Resources Limited - Singapore
- Commonwealth Bank - Australia
- Sinarmas Energy and Mining - Indonesia
- Thai Mozambique Logistica
- Lanco Infratech Ltd - India
- Cement Manufacturers Association - India
- Chettinad Cement Corporation Ltd - India
- Eastern Coal Council - USA
- Maheswari Brothers Coal Limited - India
- Ministry of Transport, Egypt
- San Jose City I Power Corp, Philippines
- Romanian Commodities Exchange
- Kaltim Prima Coal - Indonesia
- Ceylon Electricity Board - Sri Lanka
- New Zealand Coal & Carbon
- Sree Jayajothi Cements Limited - India
- Bangladesh Power Developement Board
- PNOC Exploration Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Standard Chartered Bank - UAE
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- SMG Consultants - Indonesia
- Renaissance Capital - South Africa
- Sical Logistics Limited - India
- Siam City Cement PLC, Thailand
- Attock Cement Pakistan Limited
- Gujarat Mineral Development Corp Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Iligan Light & Power Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Posco Energy - South Korea
- Jorong Barutama Greston.PT - Indonesia
- Price Waterhouse Coopers - Russia
- Port Waratah Coal Services - Australia
- Aboitiz Power Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Ambuja Cements Ltd - India
- Simpson Spence & Young - Indonesia
- Orica Australia Pty. Ltd.
- Wilmar Investment Holdings
- Samtan Co., Ltd - South Korea
- GAC Shipping (India) Pvt Ltd
- Alfred C Toepfer International GmbH - Germany
- Georgia Ports Authority, United States
- Minerals Council of Australia
- Indian Energy Exchange, India
- Xindia Steels Limited - India
- Pendopo Energi Batubara - Indonesia
- Coalindo Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- Mercator Lines Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Baramulti Group, Indonesia
- Borneo Indobara - Indonesia
- SMC Global Power, Philippines
- CNBM International Corporation - China
- Mjunction Services Limited - India
- Krishnapatnam Port Company Ltd. - India
- Medco Energi Mining Internasional
- Ministry of Mines - Canada
- Antam Resourcindo - Indonesia
- Trasteel International SA, Italy
- Sindya Power Generating Company Private Ltd
- Oldendorff Carriers - Singapore
- Essar Steel Hazira Ltd - India
- CIMB Investment Bank - Malaysia
- Uttam Galva Steels Limited - India
- Sakthi Sugars Limited - India
- Indonesian Coal Mining Association
- Edison Trading Spa - Italy
- Offshore Bulk Terminal Pte Ltd, Singapore
- Star Paper Mills Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Anglo American - United Kingdom
- Larsen & Toubro Limited - India
- Toyota Tsusho Corporation, Japan
- Electricity Authority, New Zealand
- LBH Netherlands Bv - Netherlands
- Madhucon Powers Ltd - India
- Agrawal Coal Company - India
- SN Aboitiz Power Inc, Philippines
- Vedanta Resources Plc - India
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