High Global Demand For February Coal HBA Hoist Breaks 188.38 US Dollars Per Ton

Illustration. (Photo: Unsplash)

JAKARTA - The Ministry of Energy and Mineral Resources has set the reference coal price (HBA) for February 2022 at 188.38 US dollars per metric ton. One of the reasons for this increase was the increasing global demand for coal.

"The increase in HBA in February 2022 was due to the high demand for global coal commodities," said the Head of the Communication, Public Information Services and Cooperation Bureau (KLIK) of the Ministry of Energy and Mineral Resources Agung Pribadi in his statement, Tuesday, February 8.

Agung added that another factor that influenced the increase in HBA was the problem of natural gas supply in Europe. so most European countries turn to coal for power generation.

"The push for the HBA figure is also inseparable from the decision of the Indonesian government to implement an export ban policy as of January 1, 2022 to address domestic needs," he added.

The government itself finally lifted the ban for companies listed as having complied with the DMO provisions on January 31.

HBA itself is a price obtained from the average index of the Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt's 5900 in the previous month, with quality equivalent to 6322 kcal/kg GAR, Total Moisture 8 percent, Total Sulfur 0.8 percent, and Ash 15 percent.

Later, this price will be used directly in the sale and purchase of coal commodities (spot) for one month at the point of sale delivery on a Free on Board basis on a transport vessel (FOB Vessel).

There are two derivative factors that influence the movement of HBA, namely, supply and demand. In terms of supply derivatives, it is influenced by season (weather), mining techniques, supplier country policies, to supply chain technicalities such as trains, barges, and loading terminals.

Meanwhile, the derivative demand factor is influenced by falling electricity demand, which correlates with industrial conditions, import policies, and competition with other energy commodities, such as LNG, nuclear, and hydro.