European Coal Requests Decreased, Ministry Of Energy And Mineral Resources Patok HBA February So 277.05 US Dollars Per Ton

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has set the price of Coal Reference (HBA) in February 2023 to 277.05 US dollars. This price was recorded to have decreased by 28.16 US dollars per ton compared to HBA January 2023.

Head of the Communication, Public Information Service, and Cooperation Bureau of the Ministry of Energy and Mineral Resources (ESDM) Agung Pribadi revealed that the decline in HBA was influenced by the start of warming the weather in the European continent.

"The decline in coal prices is due to the decline in demand for coal from Europe, which is due to the weather in Europe, which has started to warm up," Agung said in Jakarta, Monday, February 13.

In addition, the condition of European gas supply also took part in determining the fluctuations in the amount of HBA.

"The weakening of natural gas prices also has an impact on coal prices to US $ 277.05 so that all indexes that influence HBA have decreased," said Agung.

It is known that earlier this year, coal distribution disruption in Australia was one of the triggers for the increase in HBA in January 2023 to 305.21. Where Australia is one of the global coal suppliers.

Agung further said that there are two derivative factors that affect the movement of HBA, namely, supply and demand. The supply derivative factors are influenced by seasoning (weatherca), mining techniques, supplier state policies, to technical supply chains such as trains, barges, and terminal loading.

Meanwhile, demand derivative factors are influenced by declining electricity demand which correlates with industrial conditions, import policies, and competition with other energy commodities, such as LNG, nuclear, and hydro.

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 Sulphur 0.8 percent, and Ash 15 percent.

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