The Indonesian Energy and Mineral Resources Ministry has set the coal benchmark price (HBA) for May at USD 81.86 per metric ton, marking a ninth consecutive month of price fall, according to an official statement published on government website.
Notably, the benchmark price is 7.9% lower on a month-to-month basis, down from USD 88.85/MT set for April.
The drop for May’s pricing is primarily influenced by the coal import restrictions imposed in China and India, energy ministry spokesman Agung Pribadi stated.
Stiffening competition faced with alternate coal originating countries – Australia and Russia – also has greatly impacted the demand for Indonesian coal in markets such as Japan and South Korea.
The Indonesian benchmark coal price had continued to decline from its peak of USD 107.83/MT in August last year to below USD 90/MT in April—signaling there was oversupply from domestic coal producers, according to Hendra Sinadia, Deputy Executive Director of the Indonesian Coal Mining Association (APBI).
The HBA price for Indonesian thermal coal, locally known as Harga Batubara Acuan, is the basis for determining the prices of 77 coal products and calculating the royalty required to be paid by miners for each metric ton of coal sold.
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