October HBA Coal reference price continues rising trend

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The government set its coal reference price (HBA) for October 2016 at US$69.07 per ton, higher than $63.93 in September, marking the fifth consecutive increase since June, or the seventh monthly increase since January.

Director General of Mineral and Coal Bambang Gatot Ariyono said on Wednesday that the rise in the HBA is in line with the rising trend of the commodity in the international market, particularly triggered by production cut in China.

Hendra Sinadia, Executive Director of the Indonesia Coal Mining Association (ICMA), said that the rising coal price trend will continue in the fourth quarter of this year amid higher demand during the winter.

He said that aside from the production cut in China, lower production in other key exporting nations of Australia and Indonesia has boded well for the price of coal.

Hendra, however, said there remains uncertainty whether the current coal price recovery is sustainable.

The average HBA in the first 10 months of this year stands at $55.54, or the lowest since the reference price was introduced in 2009.

The HBA 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.

Click HERE for the full HBA list for October

Posted by : admin [ 10/14/2016 11:13:00 AM ]