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Indonesia sets Sep HBA thermal coal price at $65.79/mt, lowest since Oct 2016

Source: Global Energy, September 10, 2019

Indonesia's Ministry of Energy and Mineral Resources set its September thermal coal reference price -- also known as Harga Batubara Acuan, or HBA -- at $65.79/mt, down 9.5% month on month and down 37.2% year on year, the lowest since October 2016.

Existing Chinese import curbs with an uptick in domestic coal production, weak seaborne demand from India, the ongoing trade dispute between US and China and lower coal demand from Europe were the main factors pulling down the HBA price, according to a ministry spokesperson.

The ministry had set the price for August 2018 at $72.67/mt, and for September 2018 at $104.81/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 $61.31/mt, down from $65.97/mt in July, while the daily 7-45 day Platts Newcastle FOB price for coal with a calorific value of 6,300 kcal/kg GAR averaged $62.24/mt, down from $72.06/mt in July.

The HBA price for thermal coal is the basis for determining the prices of 77 Indonesian coal products and calculating the 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.
News Source: S&P Global