Indonesia sets March HBA thermal coal price at $67.08/mt, up 0.3% from Feb, down 26% on year

Singapore — Indonesia's Ministry of Energy and Mineral Resources has set its March thermal coal reference price -- also known as Harga Batubara Acuan or HBA -- at $67.08/mt, inching up 0.3% on month but down 26% year on year.

China's reliance on the imported material amid a domestic supply crunch after the Lunar New Year holidays, coupled with an uptick in Indian seaborne demand, supported Kalimantan thermal coal prices on a month-on-month basis, according to a ministry spokesman.

The ministry had set the price for February at $66.89/mt, and for March 2019 at $90.57/mt.

The HBA is a monthly average price based 25% each on the 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 February, the daily Platts FOB Kalimantan 5,900 kcal/kg GAR coal assessment averaged $61.35/mt, up from $60.48/mt in January.

The HBA price for thermal coal is the basis for determining the price of 77 Indonesian coal products and calculating the amount 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.