October HBA Set at USD51,00 per Tonne

Thursday, 1 October 2020 - Dibaca 2722 kali

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 284.Pers/04/SJI/2020

Date: 1 October 2020

October HBA Set at USD51,00 per Tonne

The Reference Coal Price ('HBA') in October 2020 increases by 3.2% compared to that in September 2020. After declining in September to USD49.42 per tonne, the October HBA is set at USD51.00 per tonne.

"Positive industrial signals that are rising in China and Japan have picked up the HBA in October 2020. Coal demand from China has increased because the price of its domestic coal is higher than that of imported coal," said Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of Energy and Mineral Resources, Agung Pribadi, in Jakarta on Thursday (1/10)

Mr. Pribadi added that the recovery of Japan's steel and automotive industries had also increased global coal demand. The increase in coal demand in several countries has led to a surge in the monthly average of indexes that make up the HBA, namely ICI is up by 0.53%, Platt's up 0.12% GCNC up 6.29%, and NEX up 6.01%.

Since the Covid-19 was declared a global pandemic throughout 2020, the HBA strengthened by 0.28 percent to USD67.08 per tonne in March compared to February HBA at USD66.89 per tonne. It then continued to weaken to USD65.77 per tonne in April and USD61.11 per tonne in May. In June, it fell to USD52.98 per tonne, July USD52.16 per tonne, and August USD50.34 per tonne.

The HBA is obtained from the average of several indexes, including Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platts 5900 in the previous month. The quality is made equivalent to 6322 kcal per kilogram of GAR.

This reference price will be used in direct (spot) sale and purchase of coal commodities for a month at the point of delivery of free on board the vessel (FOB Vessel). (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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