- Prices of all grades rise on firm Asian demand, tighter supply
- 3,400 GAR coal reaches record high on strong demand
The Harga Batubara Acuan (HBA) thermal coal benchmark prices released by the Ministry of Energy and Mineral Resources (ESDM), Indonesia, for the second half of April 2026 indicate higher prices across all calorific value (CV) segments. The increase reflects improving international demand, tighter spot availability of Indonesian cargoes, and continued procurement interest from key Asian importers, particularly ahead of the summer consumption cycle.
Higher-calorific Indonesian coal registers moderate gains
The benchmark price for 6,322 kcal/kg GAR coal rose by around 3.6% to $103.43/t in the second half of April, compared with the first half of the month. The increase was mainly supported by steady demand from power utilities across Asia, particularly in China and Southeast Asia, where utilities continue to secure medium- to high-CV coal for stable power generation. Additionally, relatively firm international coal prices and stable freight conditions contributed to the upward adjustment in benchmark values.
Mid-CV coal prices climb to multi-month highs
The HBA-I benchmark for 5,300 kcal/kg GAR coal recorded a sharper increase of 7.5%, reaching $77.81/t compared with the first half of April. Notably, this price level was last observed in the first half of June 2025, highlighting the strength of the current rebound in the mid-CV segment.
The rise reflects stronger demand from price-sensitive importing countries such as India and Vietnam, where utilities and industrial users prefer mid-grade coal due to its balanced cost-to-energy ratio. Limited spot cargo availability also contributed to the upward pressure on prices.
Lower-CV prices hit record high as demand strengthens
Lower-calorific Indonesian coal segments recorded comparatively stronger gains during the assessment period, reflecting firm demand from cost-sensitive buyers and relatively tighter spot availability. The HBA-II benchmark for 4,100 kcal/kg GAR coal increased by 5.7% to $52.84/t, supported by steady procurement from industrial users and smaller power producers across South and Southeast Asia.
Meanwhile, the HBA-III benchmark for 3,400 kcal/kg GAR coal rose more sharply by 8.7% to $38.3/t, marking the highest level since the inception of the HBA index, amid strong buying interest from highly price-sensitive markets and a shift towards lower-cost fuel options.
Outlook
Looking ahead, Indonesian coal benchmark prices are expected to remain firm in the near term, supported by seasonal demand ahead of peak summer electricity consumption across Asia and continued interest in cost-efficient coal grades.
However, the pace of further price increases may remain moderate, as comfortable inventories at some importing countries and competition from domestic coal production — particularly in India and China — could limit aggressive buying in the spot market. Additionally, lack of clarity on annual production curbs and volatility in freight rates amid geopolitical tensions may influence index prices further.
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