Europe Re-Operation Of PLTU, HBA October Rose To 330.97 US Dollars Per Ton

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) announced that the Coal Price of Acuan (HBA) in October 2022 will increase by 11.75 US dollars per tonne to 330.97 tons from last September of US$319.22 per tonne.

Head of the Bureau of Communication, Public Information Service and Cooperation (KLIK) of the Ministry of Energy and Mineral Resources, Agung Pribadi, in his official statement, said that this increase was triggered by European countries again operating coal plants that also raised global coal demand.

In addition, the increase in HBA in October was influenced by the increase in the average monthly index of HBA preparation, namely ICI up 3.63 percent, Platts up 4.41 percent, GNCC up 3.98 percent, and NEX up 3.08 percent.

"In addition to the rise in the average index, European countries such as Germany, the Netherlands and Belgium have revived coal plants as a result of cutting gas by Russia," he said in an official statement, Monday, October 3.

Another factor that affects the increase in HBA is the problem with natural gas supply in Europe.

"There was a gas network leak that occurred in the Baltic Sea so that gas prices soared," said Agung.

This October HBA move is the only one since early 2022 where the previous highest score occurred in June, HBA rose to reach 323.91 US dollars per tonne.

The factor in European geopolitical conditions as a result of the Russian-Ukrainian conflict as well as the electricity crisis in India due to heat waves is still the main driver factor.

After that, HBA tends to fluctuate, increasing and decreasing. HBA in August was at US$321.59 per ton and last September at US$319.22 per ton.

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

Later, this price will be used directly in the sale and purchase of coal commodities for one month at the Free on Board sales point on board (FOB Veseel).

There are two derivative factors that affect the movement of the HBA, namely supply and demand. The derivative factors of supply are influenced by weather, mining techniques, supplier country policies, to technical devices in the supply chain such as trains, barges, or terminal loading.

Meanwhile, the derivative demand factor is influenced by the need for electricity to decrease in correlated with industrial conditions, import policies, and competitions with other energy commodities, such as LNG, nuclear, and hydro.