CMP 29.55P(AS ON 19-06-2009)
52WEEKS HIGH Rs.55/-
52 WEEKS LOW Rs.12/-
INDUSTRY
Coke is a derivative of metallurgical coking coal and plays a very significant role in metallurgical process. Coke is the main source of heat and is also a the reducing agent required to facilitate the conversion of metallurgical ores into metal in the smelting process. It fins useful application in steel plants, foundries, blast furnace, soda ash manufacturing, Graphite Industry and other chemicals. Met coke is also used for making pig iron from blast furnace , making Ferro alloys;fertilizer;calcium carbide; as filter coke for polygranular carbon products,
China is the largest coke producer , as well as the largest coke consumer in the world. Total output of China is 61% of that of the world.
The Indian Coke Industry is dominated by the Integrated Steel Plants (ISPs). These units possess captive coking facilities. The production/consumption of Coke by ISPs is estimated at 12.8 Million Tons (FY 2002-2003).
India has largely been an importer of coke from China and Japan. More than 85% of the imported coke is of Chinese origin. Even the Coke imported from Japan is indirectly Chinese since Japans imports from China are more than what it exports to other countries. The price of Coke has gone up to Rs.22000 a tonne from Rs.18000 a tonne while metallurgical coke of domestic origin is quoted at Rs.13000-14000 a tonne with 18% ash content. The bench mark variety with 12% cash content metallurgical coke in India is sold at Rs.22000/- a tonne. The prices of iron ore have also spurted by 25%, affecting margins. Thereby , independent pig iron producers have reduced their production capacity by half despite huge buildups of demand from steel producers. A major part of the imported coke is consumed in the Southern and Western region. The deficit of 14mn tons is expected to grow to nearly 40mn tons by 2011-12.
THE COMPANY
In India, Ennore Coke Ltd. Is the in the business of trading of coal and coke and decided to manufacture Met Coke. The company has agreed to purchase the Non-Recovery Coke Oven Project of 100,000TPA of Met Coke at Haldia , West Bengal. Ennore coke is exporting 45% of the entire production to the export s markets mainly to Pakistan, Iran, UAE and Belgium. The quantum of exports is expected to rise by 60-67% in the next three to four months.
The Current demand for coke , in the domestic market , is around 32MT and there has been a deficit supply of 11.3MMT. With vast market still untapped, the impact of economic meltdown on the coke industry is unlikely to be very significant.
The Primary plant of Ennore Coke is based in Haldia with 130,000mt pa. They have also a plant at Cuttack with enhanced capacity of 100,00mtpa. Ennore coke has tied up facilities at Durgapur, West Bengal and Nergundi , Orissa. Buoyed by the conversion facility the company has recorded a turnover of more than Rs.100 crore in the last financial year.
Ennore Coke Limited is a public Limited Company and is in the process of establishing metallurgical coke plant with a capacity if 1.30Lac TPA and a waste heat recovery based power plant of 13MW capacity in Haldia.
The Vision of Ennore Coke Ltd , is to offer the best products and services on the strength of a dedicated workforce and best business practices. Majority of met coke requirements are imported from China , which has recently raised the Export duty to 40% from existing level of 25% and that of cooking coal is increased to 10% from existing 5%. The demand for met Coke will continue to move upwards, given the yawning gap between the demand and supply. The coke market is strong and prices have reached records highs, yet there are worries over the short term future as coal supply is stifled in China, South Africa and Australia. The supplies have been affected by the Power shortage, severe weather and fear over supplies ti major user as such steel has potential to push prices even higher.
With the Groups $5.5 billion back up, Ennore Coke will be the domestic leader in the Met Coke Sector, making high Quality Met Coke and clean power in three years.
China is the largest coke producer , as well as the largest coke consumer in the world. Total output of China is 61% of that of the world.
The Indian Coke Industry is dominated by the Integrated Steel Plants (ISPs). These units possess captive coking facilities. The production/consumption of Coke by ISPs is estimated at 12.8 Million Tons (FY 2002-2003).
India has largely been an importer of coke from China and Japan. More than 85% of the imported coke is of Chinese origin. Even the Coke imported from Japan is indirectly Chinese since Japans imports from China are more than what it exports to other countries. The price of Coke has gone up to Rs.22000 a tonne from Rs.18000 a tonne while metallurgical coke of domestic origin is quoted at Rs.13000-14000 a tonne with 18% ash content. The bench mark variety with 12% cash content metallurgical coke in India is sold at Rs.22000/- a tonne. The prices of iron ore have also spurted by 25%, affecting margins. Thereby , independent pig iron producers have reduced their production capacity by half despite huge buildups of demand from steel producers. A major part of the imported coke is consumed in the Southern and Western region. The deficit of 14mn tons is expected to grow to nearly 40mn tons by 2011-12.
THE COMPANY
In India, Ennore Coke Ltd. Is the in the business of trading of coal and coke and decided to manufacture Met Coke. The company has agreed to purchase the Non-Recovery Coke Oven Project of 100,000TPA of Met Coke at Haldia , West Bengal. Ennore coke is exporting 45% of the entire production to the export s markets mainly to Pakistan, Iran, UAE and Belgium. The quantum of exports is expected to rise by 60-67% in the next three to four months.
The Current demand for coke , in the domestic market , is around 32MT and there has been a deficit supply of 11.3MMT. With vast market still untapped, the impact of economic meltdown on the coke industry is unlikely to be very significant.
The Primary plant of Ennore Coke is based in Haldia with 130,000mt pa. They have also a plant at Cuttack with enhanced capacity of 100,00mtpa. Ennore coke has tied up facilities at Durgapur, West Bengal and Nergundi , Orissa. Buoyed by the conversion facility the company has recorded a turnover of more than Rs.100 crore in the last financial year.
Ennore Coke Limited is a public Limited Company and is in the process of establishing metallurgical coke plant with a capacity if 1.30Lac TPA and a waste heat recovery based power plant of 13MW capacity in Haldia.
The Vision of Ennore Coke Ltd , is to offer the best products and services on the strength of a dedicated workforce and best business practices. Majority of met coke requirements are imported from China , which has recently raised the Export duty to 40% from existing level of 25% and that of cooking coal is increased to 10% from existing 5%. The demand for met Coke will continue to move upwards, given the yawning gap between the demand and supply. The coke market is strong and prices have reached records highs, yet there are worries over the short term future as coal supply is stifled in China, South Africa and Australia. The supplies have been affected by the Power shortage, severe weather and fear over supplies ti major user as such steel has potential to push prices even higher.
With the Groups $5.5 billion back up, Ennore Coke will be the domestic leader in the Met Coke Sector, making high Quality Met Coke and clean power in three years.
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