Indonesia sets December HBA thermal coal price at $59.65/mt, up 7.1% on month

Singapore — Indonesia's Ministry of Energy and Mineral Resources set its December thermal coal reference price – also known as Harga Batubara Acuan, or HBA – at $59.65/mt, down 10% year on year but up 7.1% on the month, according to a ministry official.

"The increasing demand from Japan, South Korea and India for Indonesian thermal coal shows improvements in their domestic industrial activities," the official said.

"Indonesia's commitment to increase its export to China has also strengthened positive sentiment for coal prices," the official added.

The ministry had set the price for November 2020 at $55.71/mt, and for December 2019 at $66.30/mt.

The HBA is a monthly average price based 25% each on Platts Kalimantan 5,900 kcal/kg GAR assessments, Argus-Indonesia Coal Index 1 (6,500 kcal/kg GAR), Newcastle Export Index (6,322 kcal/kg GAR) and globalCOAL Newcastle (6,000 kcal/kg NAR).

In November, the daily Platts FOB Kalimantan 5,900 kcal/kg GAR coal assessment averaged $51.58/mt, up 1.9% from $50.63/mt in October.

The HBA price for thermal coal is the basis for determining the prices of 77 Indonesian coal products and calculating the amount of royalty producers have to pay for each metric ton of coal sold. It is based on 6,322 kcal/kg GAR coal with 8% total moisture content, 15% ash as received and 0.8% sulfur as received.