Indonesia's Benchmark Coal Price Extends Drop in February 2017

Indonesia's Benchmark Coal Price Extends Drop in February 2017

The benchmark thermal coal price of Indonesia (in Indonesian: Harga Batubara
Acuan, or HBA), the a monthly price that is set by Indonesia's Energy and
Mineral Resources Ministry, and which is based on a selection of domestic
and international coal indices - continued to slide in the new year. The HBA
fell 3.4 percent to USD $83.32 per metric ton in February 2017. Since the
recent peak of USD $101.67 per metric ton in December 2016, the HBA price
has now plunged 18 percent over the past two months.

However, compared to one year ago, Indonesia's coal price is still up 64
percent. In the second half of 2016 coal prices grew rapidly on the back of
low production rates, especially in China that decided to streamline its
coal industry by curbing coal production, hence combating the local
oversupply and making China's coal policies in line with the Paris Climate
Agreement. Meanwhile, demand was rising ahead of the winter time. In the new
year, however, demand has fallen, while it is estimated that coal mining
companies have been eager to boost output in recent months to enjoy the
higher coal price.

The HBA is based for 25 percent on the Platts Kalimantan 5,900 kcal/kg GAR
assessment; 25 percent on the Argus-Indonesia Coal Index 1 (6,500 kcal/kg
GAR); 25 percent on the Newcastle Export Index (6,322 kcal/kg GAR), and 25
percent on the globalCOAL Newcastle (6,000 kcal/kg NAR) index.

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Link to Original Article:
http://www.indonesia-investments.com/news/todays-headlines/indonesia-s-bench
mark-coal-price-extends-drop-in-february-2017/item7584

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com