Singapore — Indonesia's Ministry of Energy and Mineral Resources set its July thermal coal reference price, also known as Harga Batubara Acuan, or HBA, at $52.16/mt, down 1.5% on the month and down 27.5% on the year.
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"Demand for Indonesian coal has been weak amid significant Chinese and Indian domestic stockpiles, as these countries prioritize their domestic production, edging the HBA lower on the month," according to a ministry spokesman.
The ministry had set the price for June at $52.98/mt, and for July 2019 at $71.92/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 June, the daily Platts FOB Kalimantan 5,900 kcal/kg GAR coal assessment averaged $48/mt, down 3.7% from $49.84/mt in May.
The HBA price for thermal coal is the basis for determining the prices of 77 Indonesian coal products and for 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.