Indonesia has set coal benchmark price for Jan’19 at USD 92.41/MT FOB Vessel, barely changed from USD 92.51/MT in Dec’18, the Energy and Mineral Resources Ministry said in a statement on Monday.
The monthly coal benchmark price in Jan’19 fell by 6.62% for the full year 2018, and has dropped 14.3% from the highest price in more than 6 years at USD 107.83/MT hit in Aug’18.
The benchmark price had averaged USD 98.96/MT in CY18, up 15% Y-o-Y from USD 85.92/MT in CY17, but the monthly prices has been falling continuously since Sep’18.
“It’s still China factor,” said Agung Pribadi, the ministry’s spokesman.
China, the world’s top coal buyer, retreated from the import market in December last year as it restricted imports February 2019 due to weak domestic demand.
Rising supply from Indonesia as producers have ramping up production to benefit the strong prices earlier in 2017, also contributed to the drop in prices, Vicky Adijanto, coal research analyst at Wood Mackenzie in Singapore.
“Winter demand has not picked up as expected with milder temperatures in key Asian market,” Adijanto said by email
Indonesian 4200 GAR has been the worst hit by the tepid Chinese demand with prices now hovering at USD 30/MT, dropping from the highest USD 52-53/MT hit in Feb’18.
But Adijanto said prices of 4200 GAR will increase this year when Chinese import restrictions are lifted.
“Until then, prices will remain muted,” she said.
Leave a Reply