China Tightens Coal Imports, January HBA Drops to USD65.93 per Ton

MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
PRESS RELEASE

NUMBER: 027.Pers/04/SJI/2020
Date: 14 January 2020

China Tightens Coal Imports, January HBA Drops to USD65.93 per Ton

Minister of Energy and Mineral Resources (EMR) Arifin Tasrif through Ministerial Decision Number 2 K/30 MEM/2020 sets the market sales price of coal for January 2020 at USD65.93 per ton or dropping slightly by USD0.37 per ton from December Coal Reference Price (HBA) at USD 66.30 per ton.

Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of EMR Agung Pribadi says one of the factors contributing to January HBA decrease is China's tighter imports of coal.

"The drop in January coal price is due to tighter requirements of coal imports to China and weaker performance of the main importers in Asia such China, India, Japan, and South Korea," said Agung in Jakarta (14/1).

The January HBA will be used for direct (spot) sales for the whole month on the basis of FOB the vessel.

The HBA value refers to the average coal price indexes commonly used in the world's coal trade, namely Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt's 5900 of the previous month.

Meanwhile, the majority reference prices of 20 metallic minerals (Mineral Reference Price, HMA) fluctuate in January 2020. For example, Nickel drops to USD 13,875.68/dry metric ton (dmt) from the previous month at USD16,107.27/dmt.

1. Cobalt: USD 34,772.73/dmt, dropping from USD 35,500.00/dmt
2. Lead: USD 1,913.64/dmt, dropping from USD 2,145.20dmt
3. Zinc: USD 2,284.09/dmt, dropping from USD 2,515.34/dmt
4. Aluminum: USD 1,762.32/dmt, dropping from USD1,758.05/dmt
5. Copper: USD 5,959.75/dmt, rising from USD 5,851.98/dmt
6. Gold as associated mineral: USD1,466.68/ounce, dropping from USD1,484.03/ounce
7. Silver as associated mineral: USD16.94/ounce, dropping from USD17.49/ounce.
8. Tin ingot Pb 300, Pb 200, Pb 100, Pb 050, 4NINE: according to the tin ingot price published by the ICDX on the sales day
9. Gold metal and silver metal: according to the gold metal price published by the London Bullion Market Association (LBMA) on the sales day
10. Mangan: USD 3.36/dmt, dropping from USD 3.72/dmt
11. Laterite/Hematite/Magnetite iron ore: USD1.28/dmt, rising from USD1.19/dmt
12. Chrome ore: USD 2.51/dmt, rising from USD 2.17/dmt
13. Ilmenite concentrate: USD 4.48/dmt, rising from USD 4.39/dmt
14. Titanium concentrate: USD10.67/dmt, rising from USD 10.45/dmt

The HMA is one of the variables in setting the Mineral Benchmark Price (HPM) of metals based on the formula set out in Ministerial Regulation Number 2946 K/30/MEM/2017 on Formula for Pricing the Metallic Mineral Benchmark. Other variables in pricing the metal HPM are value/content of metallic minerals, constant, corrective factor, treatment cost, refining charges, and payable metal.

The HMA is determined by Minister of EMR monthly and refers to the metallic mineral price published by the world's indexes such as London Metal Exchange, London Bullion Market Association, Asian Metal, and Indonesia Commodity and Derivatives Exchange (ICDX). (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

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