Record 7 Percent Drop, November HBA Pegged at 308.2 US Dollars per Ton

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Energy and Mineral Resources (ESDM) has set the Reference Coal Price (HBA) for November at US$ 308.2 per ton.

This figure was recorded to have decreased by 22.77 US dollars per ton or 7.39 percent compared to the October HBA.

Head of the Bureau of Communication, Public Information Services and Cooperation (KLIK) of the Ministry of Energy and Mineral Resources, Agung Pribadi, said the decline was triggered by an increase in European gas supplies.

"The increase in gas supply in Europe has caused gas prices to plummet, this condition also has an impact on coal prices, which also decline", he said in a statement to the media, Thursday, November 3.

Another factor that contributed to the decline in HBA was China's coal production and economic conditions.

"In addition, the increase in coal production and the slowdown in the Chinese economy have also contributed to the decline in global coal prices", said Agung.

The HBA movement since the beginning of 2022 touched the highest value in October, where the HBA rose to touch the level of 330.97 US dollars per ton.

The factor of European geopolitical conditions as a result of the Russia-Ukraine conflict which caused fluctuations in European gas prices became the main driving factor.

China's increasing coal production, but the slowdown in its economy is another factor in the decline in HBA this month.

Agung added that two derivative factors influenced the movement of the HBA, namely, supply and demand.

In terms of supply derivatives, it is influenced by season (weather), mining techniques, supplier country policies, and technical supply chains such as trains, barges, and loading terminals.

"Meanwhile, the demand-derived factor is influenced by declining electricity demand, which correlates with industrial conditions, import policies, and competition with other energy commodities, such as LNG, nuclear, and hydro", he continued.

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 calories. , 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 Board basis on a transport vessel (FOB Vessel).