HBA coal reference price up to $101.69
Monday, December 5 2016 - 01:26 AM WIB
The government sets its coal reference price (HBA) for December 2016 at US$101.69 per ton FOB, higher than $84.89 per ton set in November.
The HBA is the price cited for the delivery period of December 1-31. Price for term contract is the average HBA over the past three months, the Directorate General of Coal and Mineral said in a statement on Monday.
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.
The HBA has been on the rise since May of this year in line with rising price of the commodity in the international market following production particularly in China, the world?s largest consumer, and rising demand ahead of winter in the fourth quarter period of this year.
The average HBA this year of $61.84, while higher than last year?s average of $60.13, is still lower than $72.62 in 2014, $82.92 in 2013, $95.48 in 2012, and $118.4 in 2011 when the price of coal was at its peak.
Editing by Reiner Simanjuntak