Sunday, 08 Jan 2012
The cement industry, which witnessed a round of price cuts last month, is now facing additional cost pressure from Coal India’s new pricing mechanism. CIL shifted to a pricing based on gross calorific value in line with global norms, from its earlier grading on useful heat value. The result has been a rise in prices.
Cement companies are expecting the increase in fuel cost to be around INR 8 to INR 10 a bag (50 kg), though analysts say it should be around INR 3 to INR 4 a bag.
Mr HM Bangur MD of Shree Cement said that “Things will be clear next week, when the new bills come from Coal India. We expect a rise of INR 8 to INR 10 a bag. We will then determine how much we need to pass on.”
The sector consumes about seven to eight million tonnes of coal annually. Mr HK Vaidya chief general manager sales and marketing of CIL said that “Normally, the sector uses higher grades of coal, like C and D. With the GCV regime in place, our average price rise is 10-15 per cent. For the cement sector, I think the impact may be a bit higher.”
A senior official of the Cement Stockists and Dealers Association in Mumbai said that “Manufacturers have not communicated any rise in prices, but we are expecting these to rise from January 15. The impact of the change in pricing method (of CIL) would differ for companies, but as much we have gathered, it will be a substantial increase in cost prices.”
Mr Shailendra Chouksey whole time director of JK Lakshmi Cement said that “The impact on pricing would be anywhere between INR 8 and INR 10 a bag. One will pay much higher; in fact, it will double our expense, as the pricing would increase by 20 to 30% and in some cases by 50%.”
Showing posts with label cement plant. Show all posts
Showing posts with label cement plant. Show all posts
Sunday, January 8, 2012
Wednesday, November 16, 2011
Ambuja Cements seeks December coal shipments - Report
Wednesday, 16 Nov 2011
India Coal Market Watch citing an unidentified person reported that Ambuja Cements Ltd may secure four Panamax cargoes of South African thermal coal.
The shipments will be delivered between December and January 2012.
(Sourced from Bloomberg)
India Coal Market Watch citing an unidentified person reported that Ambuja Cements Ltd may secure four Panamax cargoes of South African thermal coal.
The shipments will be delivered between December and January 2012.
(Sourced from Bloomberg)
Tuesday, November 8, 2011
Newcastle thermal coal price drops to USD 116 a tonne
Tuesday, 08 Nov 2011
Bloomberg reported that power station coal prices at Australia’s Newcastle port an Asian benchmark, dropped by 0.8% in the week ended November 5th 2011.
According to the globalCOAL NEWC Index, coal prices at the New South Wales port declined to USD 116.94 a tonne from USD 117.89 the previous week.
(Sourced from Bloomberg)
Bloomberg reported that power station coal prices at Australia’s Newcastle port an Asian benchmark, dropped by 0.8% in the week ended November 5th 2011.
According to the globalCOAL NEWC Index, coal prices at the New South Wales port declined to USD 116.94 a tonne from USD 117.89 the previous week.
(Sourced from Bloomberg)
Tuesday, October 25, 2011
Mining Projects Group seeks to raise $1 million for potential Indonesian coal and gold investments
Tuesday, October 25,2011
Mining Projects Group (ASX: MPJ) is set to undertake a non-renounceable rights issue to raise up to $1 million for working capital, with potential to fund activities on coal and gold projects in Indonesia.
The two for three rights issue will be offered at $0.02 per share, and is fully underwritten by Peregrine Corporate.
In addition, an attaching option is available on a one for one basis at $0.02, expiring in February 2013.
If exercised, the options will entitle the holder to one further ordinary share and attaching option expiring in February 2014, exercisable at $0.03.
Mining Projects has been approached regarding projects in Indonesia, and, if appropriate, will complete due diligence to establish the prospectivity of these projects.
Money raised in the rights issue could be used for activities such as engaging qualified experts to verify the legal ownership, logistics and geology of any projects the company may wish to invest in.
sourced Proactiveinvestors
Mining Projects Group (ASX: MPJ) is set to undertake a non-renounceable rights issue to raise up to $1 million for working capital, with potential to fund activities on coal and gold projects in Indonesia.
The two for three rights issue will be offered at $0.02 per share, and is fully underwritten by Peregrine Corporate.
In addition, an attaching option is available on a one for one basis at $0.02, expiring in February 2013.
If exercised, the options will entitle the holder to one further ordinary share and attaching option expiring in February 2014, exercisable at $0.03.
Mining Projects has been approached regarding projects in Indonesia, and, if appropriate, will complete due diligence to establish the prospectivity of these projects.
Money raised in the rights issue could be used for activities such as engaging qualified experts to verify the legal ownership, logistics and geology of any projects the company may wish to invest in.
sourced Proactiveinvestors
Thursday, October 6, 2011
South East Asia's aggressive power demand growth will require investment of US$125 billion by 2020 - WOOD MACKENZIE
Thursday, 06 October 11
Wood Mackenzie says that South East Asia’s demand growth for new power generation is so aggressive that new power generation investments of at least US$125 billion (bn) will still be required between now and 2020. A recent report titled ‘Power Crunch in South East Asia’ provides insight into this by examining regional demand hotspots of Java-Bali, Sumatra, Peninsular Malaysia, Singapore, Thailand and Vietnam.
Graham Tyler, Head of Asia Gas and Power Research, says, “South East Asia’s power demand growth will outpace Gross Domestic Product (GDP) growth in the next decade. The major demand centres alone will see demand grow from about 92,000 Megawatts (MW) in 2011 to 163,000 MW in 2020, creating a drop in reserve margins, particularly in the 2014 to 2015 period. Therefore timely investments for new power generation will be required.”
The report forecasts that capacity additions in the region are expected to top 30,000 MW and 85,000 MW by 2015 and 2020 respectively. This requires an increase in power project investment from US$44 bn by 2015 to at least US$125 bn by 2020, even if an economic downturn with GDP growth levels similar to 2009 occurs for two consecutive years from 2010-2013. The bulk of the new investment is in coal, amounting to 42% of the investment. The remainder is dominated by gas, which accounts for 18% of the total.
Mr Tyler says, “If immediate actions are taken to correct the existing situation and attract the level of investment required, the impact of power shortages will be softened from 2015 onwards. To achieve this, governments need to encourage the project financing required to meet the power capacity investment levels by speeding up regulatory and approval processes.”
Wood Mackenzie places reserve capacity at an optimal level of 15%. This is crucial to meet unplanned or unexpected power needs. A fall below this will be uncomfortable but if it drops below ten percent, scheduled power cuts should be expected as a regular feature, especially in peak demand seasons that usually fall within the warmer or drier months of the year. Vietnam is hardest hit in the drier months as 40% of their power needs are currently met by hydropower.
The report highlights that Vietnam and Indonesia are most exposed to a potential power crunch and hence require the most investments, representing about 60% of the total required. The regions in West Java and South Vietnam, are particularly in need of new capacity, as they currently have low margins and an over-dependence on power flows from other regions.
Malaysia and Thailand will also see reserve capacity fall below optimal levels in the period to 2015, but the impact should be more manageable as they have been quick to respond to the power shortages by importing power, announcing new projects and speeding up the development of existing ones. These steps will alleviate the power crunch unless project delays or higher demand growth occurs, in which case both countries will also need additional investments.
Summarising, Mr Tyler says, “Power demand growth will increase substantially in the next decade. This strong growth signals that investments of US$125 bn are required to build power capacity additions, even if we see a repeat of 2009’s economic recession over the next two years. Encouraging timely investments in West Java and South Vietnam will be especially crucial and governments can play a part in prioritising investments by expediting processes where possible.”
About Wood Mackenzie
Wood Mackenzie is the most comprehensive source of knowledge about the world’s energy and metals industries. Wood Mackenzie analyses and advise on every stage along the value chain - from discovery to delivery, and beyond - to provide clients with the commercial insight that makes them stronger. For more information visit: www.woodmac.com
If you believe an article violates your rights or the rights of others, please contact us.
(sourced coalspot)
Wood Mackenzie says that South East Asia’s demand growth for new power generation is so aggressive that new power generation investments of at least US$125 billion (bn) will still be required between now and 2020. A recent report titled ‘Power Crunch in South East Asia’ provides insight into this by examining regional demand hotspots of Java-Bali, Sumatra, Peninsular Malaysia, Singapore, Thailand and Vietnam.
Graham Tyler, Head of Asia Gas and Power Research, says, “South East Asia’s power demand growth will outpace Gross Domestic Product (GDP) growth in the next decade. The major demand centres alone will see demand grow from about 92,000 Megawatts (MW) in 2011 to 163,000 MW in 2020, creating a drop in reserve margins, particularly in the 2014 to 2015 period. Therefore timely investments for new power generation will be required.”
The report forecasts that capacity additions in the region are expected to top 30,000 MW and 85,000 MW by 2015 and 2020 respectively. This requires an increase in power project investment from US$44 bn by 2015 to at least US$125 bn by 2020, even if an economic downturn with GDP growth levels similar to 2009 occurs for two consecutive years from 2010-2013. The bulk of the new investment is in coal, amounting to 42% of the investment. The remainder is dominated by gas, which accounts for 18% of the total.
Mr Tyler says, “If immediate actions are taken to correct the existing situation and attract the level of investment required, the impact of power shortages will be softened from 2015 onwards. To achieve this, governments need to encourage the project financing required to meet the power capacity investment levels by speeding up regulatory and approval processes.”
Wood Mackenzie places reserve capacity at an optimal level of 15%. This is crucial to meet unplanned or unexpected power needs. A fall below this will be uncomfortable but if it drops below ten percent, scheduled power cuts should be expected as a regular feature, especially in peak demand seasons that usually fall within the warmer or drier months of the year. Vietnam is hardest hit in the drier months as 40% of their power needs are currently met by hydropower.
The report highlights that Vietnam and Indonesia are most exposed to a potential power crunch and hence require the most investments, representing about 60% of the total required. The regions in West Java and South Vietnam, are particularly in need of new capacity, as they currently have low margins and an over-dependence on power flows from other regions.
Malaysia and Thailand will also see reserve capacity fall below optimal levels in the period to 2015, but the impact should be more manageable as they have been quick to respond to the power shortages by importing power, announcing new projects and speeding up the development of existing ones. These steps will alleviate the power crunch unless project delays or higher demand growth occurs, in which case both countries will also need additional investments.
Summarising, Mr Tyler says, “Power demand growth will increase substantially in the next decade. This strong growth signals that investments of US$125 bn are required to build power capacity additions, even if we see a repeat of 2009’s economic recession over the next two years. Encouraging timely investments in West Java and South Vietnam will be especially crucial and governments can play a part in prioritising investments by expediting processes where possible.”
About Wood Mackenzie
Wood Mackenzie is the most comprehensive source of knowledge about the world’s energy and metals industries. Wood Mackenzie analyses and advise on every stage along the value chain - from discovery to delivery, and beyond - to provide clients with the commercial insight that makes them stronger. For more information visit: www.woodmac.com
If you believe an article violates your rights or the rights of others, please contact us.
(sourced coalspot)
Tuesday, October 4, 2011
Guildford Coal increases exploration targets in its Mongolian coal projects
Tuesday, 04 Oct 2011
Guildford Coal is evaluating an IPO of its 70% owned subsidiary Terra Energy after an upgrade in its Exploration Targets in its Mongolian coal projects to 30 million tonnes to 1.38 billion tonnes.
Guildford would remain a significant shareholder in Terra Energy. Both the South Gobi Project and the Middle Gobi Project are held via the stake in Terra Energy.
The South Gobi Project is edging closer to a maiden JORC resource in October 2011 and a Mining Licence application is being prepared for the project. The Exploration Target has been increased from 0 to 700 million tonnes.
The project is also strategically located approximately 50 kilometres east of Nariin Sukhait which includes SouthGobi Resources' Ovoot Tolgoi mine and the MAK mine which currently produce and export coking and thermal coal to customers in China.
The near surface coal geology of the South Gobi region and competitive labour rates allow for low-cost production with average ROM cash costs estimated at USD 20 a tonne. Selling prices for unwashed ROM coal are estimated at between USD 40 a tonne and USUSD 50 a tonne purchased at mine gate.
The South Gobi Project has the potential for near term development into a 1-to-2 million tonne per annum open-cut coking and thermal coal mine.
Preliminary estimates of the project are that it could have potential for high quality low sulphur coking coal.
(sourced from ProActiveInvestors)
Guildford Coal is evaluating an IPO of its 70% owned subsidiary Terra Energy after an upgrade in its Exploration Targets in its Mongolian coal projects to 30 million tonnes to 1.38 billion tonnes.
Guildford would remain a significant shareholder in Terra Energy. Both the South Gobi Project and the Middle Gobi Project are held via the stake in Terra Energy.
The South Gobi Project is edging closer to a maiden JORC resource in October 2011 and a Mining Licence application is being prepared for the project. The Exploration Target has been increased from 0 to 700 million tonnes.
The project is also strategically located approximately 50 kilometres east of Nariin Sukhait which includes SouthGobi Resources' Ovoot Tolgoi mine and the MAK mine which currently produce and export coking and thermal coal to customers in China.
The near surface coal geology of the South Gobi region and competitive labour rates allow for low-cost production with average ROM cash costs estimated at USD 20 a tonne. Selling prices for unwashed ROM coal are estimated at between USD 40 a tonne and USUSD 50 a tonne purchased at mine gate.
The South Gobi Project has the potential for near term development into a 1-to-2 million tonne per annum open-cut coking and thermal coal mine.
Preliminary estimates of the project are that it could have potential for high quality low sulphur coking coal.
(sourced from ProActiveInvestors)
China thermal coal price may rise further
Tue, Oct04, 2011
It is reported that after dropping for about two months, thermal coal price along China coastal areas had rebounded since late August, thanks mainly to active buying from end users. And the price is likely gain further strength for the following supportive factors.
1. Supply from coal-rich Shanxi province is predicted to be affected by the deadly accident on September 16 at a mine in Shuozhou which belongs to China National Coal Group. The provincial government ordered all underground mines of China Coal in Shanxi to stop production before passing the inspection. From sources available to CCR and our own data base and we believe that the impact to supply which will be primarily thermal coal is about 6 million tonnes to 8 million tonnes.
2. Daqin, China top coal dedicated rail line would kick off a 12 day maintenance starting from Sep 20, causing a direct impact on coal delivery to northern ports. Inbound coal transport to Qinhuangdao is estimated to drop by 100,000 tonnes each day during the maintenance period. Given by that, coal stocks at port may follow a downward track if the outbound shipment remains high.
3. Coal inventories at ports have fallen even before the maintenance starts. Despite efforts made by relevant departments to increase rail supply, coal stockpiled at northern ports has been on the decrease since the beginning of Sep due to high shipment amid active buying from downstream sectors. Data showed, Qinhuangdao held 7.07 million tonnes of coal in stock as of September 19 down 230,000 tonnes from month beginning. When the maintenance starts, ports would likely see a swift fall in coal stocks as shipment is expected to keep high for a while.
4. Total demand for coal may remain robust as backed by high production in most energy-guzzling sectors. In addition, China PMI increased by 0.2% from one month before to 50.9% for August the first rise in four months indicating a stable economic performance for the time being. Under this scenario, coal demand in China is expected to stay strong in the near term.
5. Hydro conditions have not yet improved notably in the southwest. Therefore, thermal power generation still faces huge pressure to make up the shortfall in electricity supply.
6. Coal imports by China may be somewhat impacted by the recent rise in global coal price. Thermal coal prices at Australia Newcastle port a benchmark for Asian coal prices rose for four straight weeks in the period from August 12 to September 9 jumping USD 4.58 per tonne or 3.82%.
Given by that, some coal demand may turn to seek domestic sources.
(sourced from sxcoal)
It is reported that after dropping for about two months, thermal coal price along China coastal areas had rebounded since late August, thanks mainly to active buying from end users. And the price is likely gain further strength for the following supportive factors.
1. Supply from coal-rich Shanxi province is predicted to be affected by the deadly accident on September 16 at a mine in Shuozhou which belongs to China National Coal Group. The provincial government ordered all underground mines of China Coal in Shanxi to stop production before passing the inspection. From sources available to CCR and our own data base and we believe that the impact to supply which will be primarily thermal coal is about 6 million tonnes to 8 million tonnes.
2. Daqin, China top coal dedicated rail line would kick off a 12 day maintenance starting from Sep 20, causing a direct impact on coal delivery to northern ports. Inbound coal transport to Qinhuangdao is estimated to drop by 100,000 tonnes each day during the maintenance period. Given by that, coal stocks at port may follow a downward track if the outbound shipment remains high.
3. Coal inventories at ports have fallen even before the maintenance starts. Despite efforts made by relevant departments to increase rail supply, coal stockpiled at northern ports has been on the decrease since the beginning of Sep due to high shipment amid active buying from downstream sectors. Data showed, Qinhuangdao held 7.07 million tonnes of coal in stock as of September 19 down 230,000 tonnes from month beginning. When the maintenance starts, ports would likely see a swift fall in coal stocks as shipment is expected to keep high for a while.
4. Total demand for coal may remain robust as backed by high production in most energy-guzzling sectors. In addition, China PMI increased by 0.2% from one month before to 50.9% for August the first rise in four months indicating a stable economic performance for the time being. Under this scenario, coal demand in China is expected to stay strong in the near term.
5. Hydro conditions have not yet improved notably in the southwest. Therefore, thermal power generation still faces huge pressure to make up the shortfall in electricity supply.
6. Coal imports by China may be somewhat impacted by the recent rise in global coal price. Thermal coal prices at Australia Newcastle port a benchmark for Asian coal prices rose for four straight weeks in the period from August 12 to September 9 jumping USD 4.58 per tonne or 3.82%.
Given by that, some coal demand may turn to seek domestic sources.
(sourced from sxcoal)
Saturday, August 20, 2011
Malabar Cements seeks 40000 tonne of steam coal
Saturday, 20 Aug 2011
Bloomberg reported that India’s Malabar Cements Ltd is seeking to import 40,000 tonnes of power-plant coal through a tender.
According to a document on the company’s website, suppliers must submit their offers by September 2.
The document said that imported coal must be of South African or Chinese origin with a minimum gross calorific value of 6,300 kilocalories per kilogram, a maximum total moisture content of 12%, maximum ash content of 15% and maximum sulfur content of 1%. Deliveries of 7,000 to 7,500 tonnes should start in October and be completed by April.
(Sourced from Bloomberg)
Bloomberg reported that India’s Malabar Cements Ltd is seeking to import 40,000 tonnes of power-plant coal through a tender.
According to a document on the company’s website, suppliers must submit their offers by September 2.
The document said that imported coal must be of South African or Chinese origin with a minimum gross calorific value of 6,300 kilocalories per kilogram, a maximum total moisture content of 12%, maximum ash content of 15% and maximum sulfur content of 1%. Deliveries of 7,000 to 7,500 tonnes should start in October and be completed by April.
(Sourced from Bloomberg)
Saturday, February 26, 2011
Coal shortage: Power, cement companies to be affected
February 26, 2011, 0:46 IST
By Malini Bhupta
Mumbai: If power producers continue to run plants below 50% PLF, further capacity additions may get impacted.
By now, it’s a well-known secret that power producers are in for tough times this year, with plant load factors (PLF) of several producers falling by as much as 20 per cent due to acute coal shortage. This pattern is likely to spill over into the new financial year too, since there just isn’t enough coal available to feed India’s steel and power production facilities.
Even as India’s new power producers were coming to terms with coal shortages in India, the floods and subsequent cyclone in Australia have come has a body-blow to cement, power and steel producers. Imported coal prices are up 44 per cent year-on-year, impacting profitability even further. A foreign brokerage house in its report has downgraded cement and power utilities, saying: “Following the emergence of worries over domestic coal availability coupled with recent tightening of global coal markets, we are beginning to get concerned about the resultant impact on Indian utilities and cement producers. For Indian power utilities, peak utilisation levels could drop 2,000 bps by FY14E supporting a demand growth of 6 per cent. For cement players already grappling with excess supply, the tightness in coal markets will likely exacerbate margin pressure.”
According to analyst estimates, Indian coal availability is expected to rise at a compound annual growth rate (CAGR) of only 4.2 per cent over the financial year 2010-14, which is insufficient to meet the power capacity growth of 10.4 per cent.
To make matters worse, merchant tariffs remained subdued during the third quarter due to good monsoons leading to muted demand growth (+5 per cent year-on-year) and higher hydro generation (+7 per cent y-o-y). Operating rates (PLF) would hence compress by 2000 basis points over FY11-14E, assuming other sources of capacity do not suffer from lack of fuel.
Availability of coal will not only affect plant load factors over the next few quarters, but this will also hit future capacities. However, running plants at a PLF of less than 55 per cent may result in the deferral of capacity-addition in early stages of development. Consequently, the brokerage firm estimates that medium-term spot rates will stay at Rs 4/unit versus the street’s expectation of a sharp decline.
However, the issues are slightly different for cement companies. Given that utilisation levels are already low, rising raw material costs will put further pressure on their margins and consequently, bottomlines. Production discipline may be one of few options for cement players, says the report.(sourced:Business-standard)
By now, it’s a well-known secret that power producers are in for tough times this year, with plant load factors (PLF) of several producers falling by as much as 20 per cent due to acute coal shortage. This pattern is likely to spill over into the new financial year too, since there just isn’t enough coal available to feed India’s steel and power production facilities.
Even as India’s new power producers were coming to terms with coal shortages in India, the floods and subsequent cyclone in Australia have come has a body-blow to cement, power and steel producers. Imported coal prices are up 44 per cent year-on-year, impacting profitability even further. A foreign brokerage house in its report has downgraded cement and power utilities, saying: “Following the emergence of worries over domestic coal availability coupled with recent tightening of global coal markets, we are beginning to get concerned about the resultant impact on Indian utilities and cement producers. For Indian power utilities, peak utilisation levels could drop 2,000 bps by FY14E supporting a demand growth of 6 per cent. For cement players already grappling with excess supply, the tightness in coal markets will likely exacerbate margin pressure.”
According to analyst estimates, Indian coal availability is expected to rise at a compound annual growth rate (CAGR) of only 4.2 per cent over the financial year 2010-14, which is insufficient to meet the power capacity growth of 10.4 per cent.
To make matters worse, merchant tariffs remained subdued during the third quarter due to good monsoons leading to muted demand growth (+5 per cent year-on-year) and higher hydro generation (+7 per cent y-o-y). Operating rates (PLF) would hence compress by 2000 basis points over FY11-14E, assuming other sources of capacity do not suffer from lack of fuel.
Availability of coal will not only affect plant load factors over the next few quarters, but this will also hit future capacities. However, running plants at a PLF of less than 55 per cent may result in the deferral of capacity-addition in early stages of development. Consequently, the brokerage firm estimates that medium-term spot rates will stay at Rs 4/unit versus the street’s expectation of a sharp decline.
However, the issues are slightly different for cement companies. Given that utilisation levels are already low, rising raw material costs will put further pressure on their margins and consequently, bottomlines. Production discipline may be one of few options for cement players, says the report.(sourced:Business-standard)
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