INDONESIA'S COAL PRICES DOWN ANEW
PLATTS - 03 Sep 2020 - Indonesia's Ministry of Energy and Mineral Resources set its September thermal coal reference price -- also known as Harga Batubara Acuan, or HBA -- at $49.42/mt, down 1.8% on the month and down 24.9% on the year.
"China's coal imports slumped 20% during the coronavirus pandemic, Indian seaborne demand remained tepid after the lockdown and both countries have sufficient stockpiles," according to a ministry spokesman.
The ministry had set the price for August at $50.34/mt, and for September 2019 at $65.79/mt.
The HBA is a monthly average price based 25% each on Platts Kalimantan 5,900 kcal/kg GAR assessments, Argus-Indonesia Coal Index 1 (6,500 kcal/kg GAR), Newcastle Export Index (6,322 kcal/kg GAR) and globalCOAL Newcastle (6,000 kcal/kg NAR).
In August, the daily Platts FOB Kalimantan 5,900 kcal/kg GAR coal assessment averaged $45.44/mt, largely stable from $45.47/mt in July.
The HBA price for thermal coal is the basis for determining the prices of 77 Indonesian coal products and calculating the amount royalty producers have to pay 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.