HBA coal reference price weakens to $94.04
Wednesday, December 13 2017 - 12:58 AM WIB
The government sets its coal reference price (HBA) for December 2017 at US$94.04 per ton FOB, a slight 0.8 percent decline from $94.84 in the previous month.
The Ministry of Energy and Mineral Resources said in a statement on Tuesday that the decline is in line with lower international coal price in the second and third week of November, which fell to around $89-90 per ton due to weakening demand from China amid import limitation.
The ministry also said that the December 2017 HBA is 8 percent lower than the December 2016 HBA of $101.69 per ton FOB.
The December 2017 HBA is the price cited for the delivery period of December 1-30. Price for term contract is the average HBA over the past three months.
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.
Following correction in the period of January-March of this year, the HBA resumed rising trend in April through November.
Editing by Reiner Simanjuntak