Indonesia’s government has set its coal benchmark price (HBA) for February at USD 66.89/MT, which’s a slight increase from the previous month.
Notably, this current reference price is higher by 1.46% on a month-to-month basis, as compared to USD 65.93/MT in the previous month of January 2020.
But it is lower by 27.14% on a year-to-year basis, as compared to USD 91.80/MT in the month of February 2019.
Reuters cited Agung Pribadi, a spokesman at the Indonesian Ministry of Energy and Mineral Resources as saying, “The price increase for February 2020 was supported by falling coal stockpiles from Chinese mines due to the Lunar New Year holidays and impact from coronavirus”, adding that rival coal producer Australia will also see some production decline.
The Indonesian thermal coal benchmark price has mostly declined every month after attaining a record high of USD 107.83/MT in August 2018. Since September 2018, the HBA had fallen gradually to hit a record low of USD 64.80/MT in October 2019.
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 amount required to be paid by producers 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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