The Indonesian government has set its coal benchmark price (HBA) for August at USD 72.67 per metric ton (MT), marking its first rise in almost a year, according to an official statement published on the Energy and Mineral Resources ministry’s website.
Notably, this current reference price is higher by one percent on a month-to-month basis, as compared to USD 71.92/MT in the previous month, but down 32.6% on annual basis.
The Indonesian thermal coal benchmark price has decreased every month since September 2018. In August 2018, the HBA was recorded at USD 107.83/MT.
Chinese import restrictions on shipments have continued to drag thermal coal prices lower in the Asia-Pacific (APAC) region.
Further, the falling price trend signals an oversupply from domestic coal producers amid stiffening competition in the global market.
The HBA price for thermal coal, locally known as Harga Batubara Acuan, is the basis for determining the prices of 77 Indonesian coal products and calculating the royalty required to be paid by miners for each metric ton of coal sold.
It is based on 6,322 kcal/kg GAR coal with 8% total moisture content, 15% ash and 0.8% sulfur as received.
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