- HBA cuts high CV offers marginally, lifts for lower grades
- Export restraint due to DMO, RKAB rules tightening supply
Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has revised its thermal coal benchmark prices (HBA) for the first half of March 2026. Prices were reduced for the higher grades while being raised for the lower ones.
The adjustment reflects a combination of improving regional demand from key Asian consumers and increasingly disciplined supply behaviour among Indonesian miners, who remain cautious about output and exports amid regulatory uncertainty and domestic supply priorities.
Price performance across segments
Benchmark movements were mixed across calorific value (CV) categories, indicating differentiated demand patterns.
The 6,322 kcal/kg GAR benchmark saw a marginal drop to $102.37/t, reflecting moderation in high-CV buying interest.
The 5,300 kcal/kg GAR (HBA-I) index also fell marginally to $71.29/t, suggesting near-term demand saturation and comfortable inventories in select importing markets.
Lower-CV grades recorded marginal gains, with HBA-II (4,100 kcal/kg GAR) rising to $47.6/t and HBA-III (3,400 GAR) rising $34.25/t.
Outlook
In the near term, the market is expected to remain cautious but supported. Any further downside in high- and mid-CV segments is likely to be limited by constrained export visibility and freight stability. Clarity on RKAB (annual mining work plan) approvals and domestic market obligation (DMO) fulfilment timelines will be critical in determining export momentum and price direction into March. Should domestic prioritisation persist, spot tightness could re-emerge despite the recent benchmark adjustments.
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