The Conflict Between Russia And Ukraine Is Getting Hotter, The Government Sets The March Coal HBA At 203.69 US Dollars Per Ton

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Energy and Human Resources (ESDM) has set the Coal Reference Price (HBA) in March 2022 at 203.69 US dollars per tonne, an increase of 15.31 US dollars per tonne from last February, which was 188.38 dollars. US per tonne. This is suspected to be geopolitical tensions between Russia and Ukraine which made global coal commodity prices soar.

"The conflict of geopolitical tensions that occurred in Eastern Europe between Russia and Ukraine caused uncertainty in gas supply," said Head of the Communication, Public Information Services and Cooperation Bureau (KLIK) of the Ministry of Energy and Mineral Resources Agung Pribadi in Jakarta, Monday, March 7.

Russia, continued Agung, is one of the largest gas producers in the world, so the conflict has caused gas supply constraints in Europe.

"European countries are even starting to turn to coal as an energy source," he explained.

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 Veseel).

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.