Indonesia’s coal price reference (HBA) dropped by 11.73 percent to US$71.92 per metric ton in July from $81.48 per metric ton in the previous month.
Energy and Mineral Resources Ministry spokesman Agung Pribadi said on Thursday that the decline was due to external factors, particularly a production increase in China, import cuts by India and the trade war between China and the United States.
“Russia also started to sell its coal to Asia,” said Agung as quoted by kontan.co.id.
The June HBA is stipulated in Energy and Mineral Resources Ministerial Decree No 117/K30/MEM/2019 on price references for minerals, metals and coal.
Four variables decide the HBA: the Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Global Coal Newcastle Index (GCNC) and Platss 5900.
Coal prices have decreased since September 2018. In August 2018, the HBA was still recorded at $107.83 per ton.
Source: News Desk / The Jakarta Post
5 July 2019