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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, 17 October 09
US COAL MINERS LOOKING AT LOWER PROFITS
Most US coal miners are looking at sharply lower third-quarter earnings, but those that produce coal for steelmaking and export should enjoy higher ...
Friday, 16 October 09
INDONESIA EXPORTED 19,194,857 MT OF COAL IN SEPTEMBER 2009 - SOURCES
COALspot.com (Indonesia): Indonesia exported 19,194,857 MT of coal in September 2009. Out of total exported quantity, South Korea imported abou ...
Friday, 16 October 09
NAVIGATING THROUGH STORMY WATERS
To Theodore E Veniamis, the President of the Union of Greek Shipowners, the current turmoil in world shipping is due to the cyclical nature of marit ...
Friday, 16 October 09
COAL INDIA RAISES PRICE BY 11%
Trak reported that, State-owned Coal India Ltd (CIL) has raised the price of coal produced by its subsidiaries by an average of 11 percent effective ...
Thursday, 15 October 09
SOUTH AFRICAN MINING COMPANY ACCEPTED $92 MILLION BID FOR COAL MINE STAKE IN SIYANDA COAL
Paguntaka reported that, Sentula Mining Ltd. gained in Johannesburg trading after the South African company accepted a 686 million-rand ($92 million ...
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- India Bulls Power Limited - India
- Indika Energy - Indonesia
- Anglo American - United Kingdom
- Kumho Petrochemical, South Korea
- Bukit Baiduri Energy - Indonesia
- Edison Trading Spa - Italy
- Semirara Mining and Power Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Madhucon Powers Ltd - India
- VISA Power Limited - India
- Central Electricity Authority - India
- Chamber of Mines of South Africa
- Holcim Trading Pte Ltd - Singapore
- McConnell Dowell - Australia
- Antam Resourcindo - Indonesia
- International Coal Ventures Pvt Ltd - India
- Ambuja Cements Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Star Paper Mills Limited - India
- Sojitz Corporation - Japan
- Electricity Authority, New Zealand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Australian Coal Association
- Planning Commission, India
- PTC India Limited - India
- Price Waterhouse Coopers - Russia
- London Commodity Brokers - England
- Goldman Sachs - Singapore
- Orica Mining Services - Indonesia
- Bukit Makmur.PT - Indonesia
- Coastal Gujarat Power Limited - India
- Baramulti Group, Indonesia
- Mjunction Services Limited - India
- The Treasury - Australian Government
- Bulk Trading Sa - Switzerland
- Directorate Of Revenue Intelligence - India
- Savvy Resources Ltd - HongKong
- ICICI Bank Limited - India
- Alfred C Toepfer International GmbH - Germany
- Agrawal Coal Company - India
- Aboitiz Power Corporation - Philippines
- Videocon Industries ltd - India
- Leighton Contractors Pty Ltd - Australia
- GAC Shipping (India) Pvt Ltd
- European Bulk Services B.V. - Netherlands
- San Jose City I Power Corp, Philippines
- Indian Oil Corporation Limited
- Krishnapatnam Port Company Ltd. - India
- Global Coal Blending Company Limited - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Siam City Cement PLC, Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Energy Development Corp, Philippines
- Thai Mozambique Logistica
- Asmin Koalindo Tuhup - Indonesia
- Eastern Energy - Thailand
- Iligan Light & Power Inc, Philippines
- Indonesian Coal Mining Association
- Ceylon Electricity Board - Sri Lanka
- Banpu Public Company Limited - Thailand
- Manunggal Multi Energi - Indonesia
- The State Trading Corporation of India Ltd
- Georgia Ports Authority, United States
- Semirara Mining Corp, Philippines
- Africa Commodities Group - South Africa
- LBH Netherlands Bv - Netherlands
- Dalmia Cement Bharat India
- Trasteel International SA, Italy
- SN Aboitiz Power Inc, Philippines
- Australian Commodity Traders Exchange
- Power Finance Corporation Ltd., India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Vedanta Resources Plc - India
- IEA Clean Coal Centre - UK
- PNOC Exploration Corporation - Philippines
- Jindal Steel & Power Ltd - India
- Mintek Dendrill Indonesia
- Lanco Infratech Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Bhatia International Limited - India
- Bangladesh Power Developement Board
- Sindya Power Generating Company Private Ltd
- Essar Steel Hazira Ltd - India
- Latin American Coal - Colombia
- GVK Power & Infra Limited - India
- Independent Power Producers Association of India
- Eastern Coal Council - USA
- Kartika Selabumi Mining - Indonesia
- Central Java Power - Indonesia
- Intertek Mineral Services - Indonesia
- Orica Australia Pty. Ltd.
- The University of Queensland
- Interocean Group of Companies - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Singapore Mercantile Exchange
- Electricity Generating Authority of Thailand
- Larsen & Toubro Limited - India
- Ministry of Transport, Egypt
- Chettinad Cement Corporation Ltd - India
- South Luzon Thermal Energy Corporation
- SMG Consultants - Indonesia
- Therma Luzon, Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Ministry of Finance - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Makarim & Taira - Indonesia
- White Energy Company Limited
- Uttam Galva Steels Limited - India
- Ind-Barath Power Infra Limited - India
- Indogreen Group - Indonesia
- GMR Energy Limited - India
- Parry Sugars Refinery, India
- Malabar Cements Ltd - India
- Commonwealth Bank - Australia
- Energy Link Ltd, New Zealand
- Petrochimia International Co. Ltd.- Taiwan
- Medco Energi Mining Internasional
- Tata Chemicals Ltd - India
- Vizag Seaport Private Limited - India
- Economic Council, Georgia
- Kepco SPC Power Corporation, Philippines
- Minerals Council of Australia
- Wood Mackenzie - Singapore
- Coalindo Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Bhushan Steel Limited - India
- Bayan Resources Tbk. - Indonesia
- Marubeni Corporation - India
- Bukit Asam (Persero) Tbk - Indonesia
- Pendopo Energi Batubara - Indonesia
- Oldendorff Carriers - Singapore
- Deloitte Consulting - India
- Rashtriya Ispat Nigam Limited - India
- Cigading International Bulk Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Binh Thuan Hamico - Vietnam
- Kobexindo Tractors - Indoneisa
- Altura Mining Limited, Indonesia
- Metalloyd Limited - United Kingdom
- Heidelberg Cement - Germany
- Gujarat Electricity Regulatory Commission - India
- Karaikal Port Pvt Ltd - India
- Mercuria Energy - Indonesia
- Grasim Industreis Ltd - India
- Riau Bara Harum - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Borneo Indobara - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Kideco Jaya Agung - Indonesia
- Jaiprakash Power Ventures ltd
- Barasentosa Lestari - Indonesia
- Sarangani Energy Corporation, Philippines
- Meralco Power Generation, Philippines
- Ministry of Mines - Canada
- Maheswari Brothers Coal Limited - India
- Indo Tambangraya Megah - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Xindia Steels Limited - India
- Thiess Contractors Indonesia
- Salva Resources Pvt Ltd - India
- Timah Investasi Mineral - Indoneisa
- CIMB Investment Bank - Malaysia
- Romanian Commodities Exchange
- Bharathi Cement Corporation - India
- Merrill Lynch Commodities Europe
- Bhoruka Overseas - Indonesia
- Sakthi Sugars Limited - India
- Wilmar Investment Holdings
- Sree Jayajothi Cements Limited - India
- Coal and Oil Company - UAE
- ASAPP Information Group - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indian Energy Exchange, India
- Sinarmas Energy and Mining - Indonesia
- Posco Energy - South Korea
- Kalimantan Lumbung Energi - Indonesia
- Tamil Nadu electricity Board
- Miang Besar Coal Terminal - Indonesia
- Samtan Co., Ltd - South Korea
- Globalindo Alam Lestari - Indonesia
- Rio Tinto Coal - Australia
- Aditya Birla Group - India
- Attock Cement Pakistan Limited
- Kapuas Tunggal Persada - Indonesia
- Kaltim Prima Coal - Indonesia
- CNBM International Corporation - China
- Carbofer General Trading SA - India
- Port Waratah Coal Services - Australia
- Toyota Tsusho Corporation, Japan
- Straits Asia Resources Limited - Singapore
- Simpson Spence & Young - Indonesia
- Gujarat Sidhee Cement - India
- Standard Chartered Bank - UAE
- OPG Power Generation Pvt Ltd - India
- Mercator Lines Limited - India
- Renaissance Capital - South Africa
- MS Steel International - UAE
- Karbindo Abesyapradhi - Indoneisa
- AsiaOL BioFuels Corp., Philippines
- Cement Manufacturers Association - India
- PowerSource Philippines DevCo
- Bank of Tokyo Mitsubishi UFJ Ltd
- Global Green Power PLC Corporation, Philippines
- SMC Global Power, Philippines
- IHS Mccloskey Coal Group - USA
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sical Logistics Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Siam City Cement - Thailand
- Petron Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- TeaM Sual Corporation - Philippines
- Formosa Plastics Group - Taiwan
- Global Business Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- New Zealand Coal & Carbon
- Parliament of New Zealand
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