Bye! May Benchmark Coal Price Leaves Level US$ 300/Ton

Jakarta, CNBC Indonesia The Ministry of Energy and Mineral Resources (ESDM) has set the Reference Coal Price (HBA) in May 2022 to decrease by US$ 12.76 from the previous month to US$ 275.64 per ton.

The decrease in HBA in May 2022 was caused by the increase in the amount of world coal supply, where China and India have increased their domestic coal production to reduce imports.

“In addition to the increase in troops, China’s decision to reduce Steam Power Plants (PLTU) and develop green energy has also contributed to the decline in world coal prices,” said Head of the Bureau of Communication, Public Information Services and Cooperation (KLIK) of the Ministry of Energy and Mineral Resources Agung Pribadi in Jakarta, Saturday (14/5).

In the previous month, the decision by the United States and the North Atlantic Treaty Organization (NATO) to embargo energy supplies from Russia has triggered an increase in the Reference Coal Price (HBA) in April 2022 to US$ 288.40 per tonne.

Agung explained, during 2022 in the first 4 months the HBA chart continued to climb. Starting from January 2022 at USD158.50 per tonne, rising to USD188.38 per tonne in February. Furthermore, March touched the figure of USD203.69 per tonne, and lastly in April it was at the level of US$288.40 per tonne. “Only this month the graph has dropped slightly,” Agung continued.

HBA itself is a price obtained from the average index of the Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt’s 5900 in the previous month, with quality equivalent to 6322 kcal/kg GAR. , Total Moisture 8%, Total Sulfur 0.8%, and Ash 15%. The May HBA will be used directly in the sale and purchase of coal commodities (spot) for one month at the point of delivery of sales on a Free on Board basis on a transport vessel (FOB Veseel).

[Gambas:Video CNBC]

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