HBA coal reference price increases 2.29%

The government sets its coal reference price (better known as HBA) for July 2016 at US$53 per ton FOB, up 2.29 percent from $51.81 in the previous month.

This is the fourth monthly increase in the HBA so far his year, in line positive price trend in the global market, following rises in March, April and June. However, the average HBA so far this year remains low at $52.01, the lowest since the price reference was introduced in 2009.

Experts said that the rise in HBA comes amid rising demand from consuming countries particularly South Korea and Japan, and lower output in producing countries particularly Indonesia and Columbia. The rally in oil price also contributed to the rising coal price.

The outlook for the commodity, however, remains weak this year amid lingering oversupply situation. Deputy Director of the Indonesia Coal Mining Association (ICMA) Hendra Sinadia expected the HBA to range between $54 and $56 per ton this year. (*)