Indonesia has cut its monthly coal benchmark price by 3.7% to USD 100.86/MT in October, from USD 104.81/MT in September, Agung Pribadi, a spokesman at the country’s Energy and Mineral Resources Ministry, said on Tuesday, 2 October, via text messages.
It is the second monthly cut in a row.
Agung Pribadi, the ministry’s spokesman, was quoted by Investor Daily as saying that the fall in September coal benchmark price was due to softening demand and import policy in China, Indonesia’s biggest coal buyer.
Prices have dropped due to easing demand from China as scorching-heat summer has ended, Pribadi said.
“The stockpile in the global market is exceeding demand for August-September,” he said separately as quoted by Investor Daily news paper.
However, October price is still higher than the benchmark price early this year at USD 95.54/MT in January.
The Indonesian coal benchmark price is calculated on calorific value of 6,322 kcal/kg basis. The formula is an average of the Indonesia Coal Index (ICI-1), Platts-5900, Newcastle Export Index (NEX) and globalCoal Index. The benchmark is used for both spot and term contracts.
Leave a Reply