Indonesia’s Ministry of Energy and Mineral Resources has set its thermal coal benchmark price (HBA) for March at USD 67.08/MT, which’s a slight increase from the previous month.
Notably, this current reference price is higher by 0.3% on a month-to-month basis, as compared to USD 66.89/MT in the previous month of February 2020.
But it is lower by 26% on a year-to-year basis, as compared to USD 90.57/MT in the month of March 2019.
Agung Pribadi, head of communication official at the Energy Ministry stated that several Chinese coal producing companies have not resumed their operational activities after the government decided to extend their Lunar New Year, due to the impact of Corona virus that has hurt coal supplies in China”.
China’s reliance on the imported material amid a domestic supply crunch after the Lunar New Year holidays, coupled with an uptick in Indian seaborne demand, supported Kalimantan thermal coal prices on a month-on-month basis, according to the ministry spokesman.
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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