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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, 14 October 09
SA'S COAL OUTPUT LIKELY TO RISE BY 2011, BOOSTED BY WATERBERG MINES
Mining weekly reported that, South Africa's coal production will struggle to meet demand over the next few years, but coal production could likely ...
Tuesday, 13 October 09
INDONESIA'S BAYAN SEES 2010 COAL OUTPUT UP 42 PCT
Reuters reported that, Indonesian coal miner PT Bayan Resources Tbk (BYAN.JK) said on Tuesday it expects its coal output to increase by 42 percent i ...
Tuesday, 13 October 09
STRAITS ASIA UPBEAT ON MEETING 2009 COAL OUTPUT
Reuters reported that, Singapore-listed coal miner Straits Asia is still optimistic about meeting its coal output target of 9 million tonnes this ye ...
Tuesday, 13 October 09
THERMAL COAL DEMAND IN CHINA DRIVES PRICE INCREASES
Metal Miner reported that, Thermal coal prices have been falling this year; contrary to many other commodities, both metals and energy that hit bott ...
Tuesday, 13 October 09
JSW ENERGY SCOUTING FOR PARTNERS, ACQUISITIONS
Business-Standard reported that, JSW Energy is planning to become an integrated power company by bringing in a partner for its transmission business ...
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- Semirara Mining Corp, Philippines
- India Bulls Power Limited - India
- Deloitte Consulting - India
- Bukit Asam (Persero) Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Globalindo Alam Lestari - Indonesia
- Economic Council, Georgia
- Romanian Commodities Exchange
- Alfred C Toepfer International GmbH - Germany
- IHS Mccloskey Coal Group - USA
- Madhucon Powers Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Riau Bara Harum - Indonesia
- Vedanta Resources Plc - India
- PNOC Exploration Corporation - Philippines
- Jorong Barutama Greston.PT - Indonesia
- Iligan Light & Power Inc, Philippines
- Standard Chartered Bank - UAE
- Bukit Baiduri Energy - Indonesia
- Central Electricity Authority - India
- Vijayanagar Sugar Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Bharathi Cement Corporation - India
- Siam City Cement - Thailand
- Port Waratah Coal Services - Australia
- Medco Energi Mining Internasional
- Mintek Dendrill Indonesia
- Orica Australia Pty. Ltd.
- PowerSource Philippines DevCo
- Straits Asia Resources Limited - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Makarim & Taira - Indonesia
- SN Aboitiz Power Inc, Philippines
- Meenaskhi Energy Private Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Australian Coal Association
- Africa Commodities Group - South Africa
- Kideco Jaya Agung - Indonesia
- ICICI Bank Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Meralco Power Generation, Philippines
- Electricity Authority, New Zealand
- Global Coal Blending Company Limited - Australia
- Sinarmas Energy and Mining - Indonesia
- Energy Link Ltd, New Zealand
- Trasteel International SA, Italy
- Sakthi Sugars Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Merrill Lynch Commodities Europe
- Timah Investasi Mineral - Indoneisa
- Agrawal Coal Company - India
- Eastern Coal Council - USA
- Indika Energy - Indonesia
- Aditya Birla Group - India
- Toyota Tsusho Corporation, Japan
- Georgia Ports Authority, United States
- Power Finance Corporation Ltd., India
- Ceylon Electricity Board - Sri Lanka
- LBH Netherlands Bv - Netherlands
- Bangladesh Power Developement Board
- Attock Cement Pakistan Limited
- Kaltim Prima Coal - Indonesia
- Mercuria Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- Independent Power Producers Association of India
- Kapuas Tunggal Persada - Indonesia
- Indogreen Group - Indonesia
- ASAPP Information Group - India
- CNBM International Corporation - China
- Leighton Contractors Pty Ltd - Australia
- Dalmia Cement Bharat India
- Karbindo Abesyapradhi - Indoneisa
- Kepco SPC Power Corporation, Philippines
- Posco Energy - South Korea
- Petron Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Miang Besar Coal Terminal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Larsen & Toubro Limited - India
- Manunggal Multi Energi - Indonesia
- Wood Mackenzie - Singapore
- Interocean Group of Companies - India
- Krishnapatnam Port Company Ltd. - India
- Savvy Resources Ltd - HongKong
- Kumho Petrochemical, South Korea
- Marubeni Corporation - India
- Anglo American - United Kingdom
- Formosa Plastics Group - Taiwan
- Billiton Holdings Pty Ltd - Australia
- Commonwealth Bank - Australia
- GN Power Mariveles Coal Plant, Philippines
- VISA Power Limited - India
- Intertek Mineral Services - Indonesia
- Price Waterhouse Coopers - Russia
- Orica Mining Services - Indonesia
- Simpson Spence & Young - Indonesia
- Chamber of Mines of South Africa
- Thai Mozambique Logistica
- SMG Consultants - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- San Jose City I Power Corp, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Malabar Cements Ltd - India
- Coastal Gujarat Power Limited - India
- Bulk Trading Sa - Switzerland
- Mjunction Services Limited - India
- Renaissance Capital - South Africa
- Siam City Cement PLC, Thailand
- IEA Clean Coal Centre - UK
- Semirara Mining and Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Jaiprakash Power Ventures ltd
- Cement Manufacturers Association - India
- South Luzon Thermal Energy Corporation
- Bahari Cakrawala Sebuku - Indonesia
- Lanco Infratech Ltd - India
- The State Trading Corporation of India Ltd
- Holcim Trading Pte Ltd - Singapore
- Gujarat Sidhee Cement - India
- Uttam Galva Steels Limited - India
- Essar Steel Hazira Ltd - India
- Sical Logistics Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Makmur.PT - Indonesia
- Thiess Contractors Indonesia
- Aboitiz Power Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
- Coal and Oil Company - UAE
- CIMB Investment Bank - Malaysia
- AsiaOL BioFuels Corp., Philippines
- Indonesian Coal Mining Association
- Indian Energy Exchange, India
- Parry Sugars Refinery, India
- MS Steel International - UAE
- New Zealand Coal & Carbon
- Gujarat Electricity Regulatory Commission - India
- Binh Thuan Hamico - Vietnam
- Rashtriya Ispat Nigam Limited - India
- SMC Global Power, Philippines
- Edison Trading Spa - Italy
- Salva Resources Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Central Java Power - Indonesia
- Ind-Barath Power Infra Limited - India
- Ambuja Cements Ltd - India
- Electricity Generating Authority of Thailand
- Bhushan Steel Limited - India
- Karaikal Port Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- PTC India Limited - India
- Singapore Mercantile Exchange
- Directorate General of MIneral and Coal - Indonesia
- Directorate Of Revenue Intelligence - India
- TeaM Sual Corporation - Philippines
- GAC Shipping (India) Pvt Ltd
- White Energy Company Limited
- Heidelberg Cement - Germany
- Energy Development Corp, Philippines
- Xindia Steels Limited - India
- Videocon Industries ltd - India
- Antam Resourcindo - Indonesia
- Mercator Lines Limited - India
- GMR Energy Limited - India
- Global Green Power PLC Corporation, Philippines
- Baramulti Group, Indonesia
- The University of Queensland
- Indian Oil Corporation Limited
- Therma Luzon, Inc, Philippines
- Ministry of Finance - Indonesia
- Tamil Nadu electricity Board
- Kartika Selabumi Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Tata Chemicals Ltd - India
- Borneo Indobara - Indonesia
- Latin American Coal - Colombia
- Pendopo Energi Batubara - Indonesia
- Planning Commission, India
- The Treasury - Australian Government
- Maheswari Brothers Coal Limited - India
- Grasim Industreis Ltd - India
- McConnell Dowell - Australia
- Parliament of New Zealand
- Coalindo Energy - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Kobexindo Tractors - Indoneisa
- Bhoruka Overseas - Indonesia
- Bhatia International Limited - India
- Indo Tambangraya Megah - Indonesia
- Oldendorff Carriers - Singapore
- Ministry of Transport, Egypt
- Chettinad Cement Corporation Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- London Commodity Brokers - England
- Vizag Seaport Private Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Eastern Energy - Thailand
- Australian Commodity Traders Exchange
- Sojitz Corporation - Japan
- International Coal Ventures Pvt Ltd - India
- Star Paper Mills Limited - India
- Minerals Council of Australia
- Banpu Public Company Limited - Thailand
- Ministry of Mines - Canada
- Global Business Power Corporation, Philippines
- Rio Tinto Coal - Australia
- OPG Power Generation Pvt Ltd - India
- Goldman Sachs - Singapore
- Barasentosa Lestari - Indonesia
- GVK Power & Infra Limited - India
- Wilmar Investment Holdings
- Altura Mining Limited, Indonesia
- Jindal Steel & Power Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Carbofer General Trading SA - India
- Sarangani Energy Corporation, Philippines
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