Indonesia raises October benchmark coal price to new high of $ 161.63 / tonne
Indonesia, the world’s largest exporter of power plant coal, raised its monthly benchmark coal price 7.7% to $ 161.63 per tonne from the previous month due to strong demand from China the country’s Ministry of Energy and Mineral Resources said in a statement on Tuesday (October 5).
“The increase in the October benchmark coal price is caused by growing demand from China, as its consumption of coal for power generation has exceeded its domestic coal supply capacity,” Agung Pribadi said. , spokesperson for the ministry in the press release.
This is the sixth month in a row that Indonesia has raised the benchmark price of coal known as Harga Batu Bara Acuan (HBA).
Growing demand for fuel from South Korea and Europe due to high natural gas prices also boosted the benchmark price, Agung said.
The benchmark price – used to calculate prices based on free-on-board vessels – had fallen between February and April before rising steadily since May to reach record highs, the ministry said.
The Indonesian Coal Price Benchmark is a monthly average price based at 25% each on the Indonesian Coal Index, Newcastle Export Index, Globalcoal Newcastle Index and Platts Kalimantan 5900 from the previous month. It is based on coal with a calorific value of 6,322 kcal / kg gross as received. HBA is also used to calculate royalties from coal sales to the government.
Coal futures break records
Coal futures continued to break new records at $ 240 / tonne, having gained 27% in September and 171% so far for the year, reported Trading Economics, an economic data provider.
Prices have increased due to the combination of tight supply in China as the country commits to cut emissions and achieve carbon neutrality by 2060; a lack of mining investment; import constraints due to restrictions linked to coronaviruses and a surge in natural gas prices amidst shortages of stocks, especially in Europe, he added.
Read more: Energy prices set to rise until 2022, analysts say
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