HBA coal reference price continues downward trend
Monday, January 11 2016 - 01:22 AM WIB
The government set its coal reference price (HBA) for January 2016 at US$53.2 per ton, slightly lower than $53.51 per ton set in December of last year.
The January 2016 HBA drops by 16.67 percent if compared to $63.84 per ton in January of last year. The current HBA level is also the lowest since the HBA was introduced in 2009.
Director of Coal Development and Management at the Ministry of Energy and Mineral Resources Adhi Wibowo said that the decline in the January HBA is in line with the lingering drop in global coal price due to a combination of weak demand and oversupply situation.
The coal reference price is based on coal with CV (GAR) of 6,322 kcal/kg. It is calculated based on the monthly average of four international coal indices: Indonesian coal index/ ICI 1, Platts-1, New Castle Export Index, and Newcastle Global Coal Index. (*)