The Indonesian Energy and Mineral Resources Ministry has set the benchmark coal price (HBA) for July at a record low of USD 71.92 per metric ton (MT), according to an official statement published on government website.
Notably, this current price is 11.73% lower on a month-to-month basis, against USD 81.48/MT in the previous month. It’s also down 31.3% on the year.
The steep decline was primarily on account of external factors, largely due in part to production increase in China, import cuts by India and the trade war between China and United States.
In addition, Russia intends to boost its coal sales to Asia as consumption has fallen sharply in Europe due to environmental concerns, challenging traditional suppliers – Australia and Indonesia.
Indonesian thermal coal prices have decreased since September 2018. In August 2018, the HBA was recorded at USD 107.83/MT.
The HBA price for thermal coal, locally known as Harga Batubara Acuan, is the basis for determining the prices of 77 Indonesian coal products and calculating the royalty required to be paid by miners for each metric ton of coal sold.
It is based on 6,322 kcal/kg GAR coal with 8% total moisture content, 15% ash as received and 0.8% sulfur as received.
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