Chinese, Winter Demand Boost Indonesia’s February Coal Benchmark Price to $100.69

Indonesia has increased coal benchmark price in February to $100.69, from $95.54 a ton in January the directorate general of coal and mineral resources of the Energy and Mineral Resources Ministry, said on its website, Feb. 8.

The February price rose about 5.3 percent from the previous month, nearing $101.69 a ton reached in December 2016. The ministry didn’t disclose the reasons for the rise in the statement. But the ministry’s spokesman, Agung Pribadi, said the benchmark price is supported by rising international prices, which is getting a boost from China.

“There has been increasing demand from the Chinese power plant. They’re switching back to coal, from previously using renewable energy,” Pribadi said as quoted by Koran Tempo.
The benchmark had hit the high of $127.05 per ton in February 2011, it was a record since it was launched in January 2009.

The Indonesian coal benchmark price is calculated on calorific value of 6,322 kcal/kg basis. The formula is an average of the Indonesia Coal Index (ICI-1), Platts-5900, Newcastle Export Index (NEX) and globalCoal Index. The benchmark is used for both spot and term contracts.

Demand from Japan and South Korea for winter heating also helped the prices rallying, Hendra Sinadia, the executive director for the Indonesian Coal Mining Association, said as quoted by Koran Tempo.

The ministry on Thursday, also set the mineral benchmark prices, including iron ore and tin. The prices are as follows:

Note:

• The base export price for tin ingots will the settlement prices at ICDX
• The base export price for gold and silver ingots will the selling price at the London Bullion Market on the day