Indonesia, the world's largest exporter of power-station coal, cut the benchmark price for sales in January by 3 percent to the lowest in 13 months, according to data released by the energy ministry.
The cost of coal with a gross energy value of 6,322 kilo- calories per kilogram was set at $109.29 a ton on free-on-board basis at vessel, compared with $112.67 a ton in December, the Directorate General of Coal and Minerals at the ministry said in its website today in Jakarta.
Hard coking coal contracts are now priced at $225 a tonne as against $265 in the previous quarter. “Prices of prime hard coking coal have come down by 15% in the January-March quarter,” said CS Verma, chairman of state-run Steel Authority of India (SAIL). “It is a falling trend and this is likely to improve the profitability of steel companies.”
“However, this is temporary and demand for coking coal is expected to rise soon as suppliers are limited.”
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