East Asia Industries Recover, November HBA Lifted to USD55.71 per Tonne

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 337.Pers/04/SJI/2020

Date: 4 November 2020

East Asia Industries Recover, November HBA Lifted to USD55.71 per Tonne

The November 2020 HBA (Indonesian Coal Benchmark Price) has picked up by 9.23% compared to the October's USD51 per tonne. Ministry of Energy and Mineral Resources (EMR) through Directorate General of Mineral and Coal has set this month's HBA at USD55.71 per ton.

"Positive signals of (coal) market demands have also pushed the increase in November HBA. Not to mention higher demands from China because Chinese domestic coal prices are higher than those of imports," said Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of EMR, Agung Pribadi, on Wednesday (4/11).

Agung added that the recovery of industries in Japan and South Korea had also influenced the global rise in coal demands. Surging coal demands in several countries mean the increase in the monthly average of indexes that make up the HBA, namely Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platts 5900.

Since Covid-19 was declared a global pandemic, the HBA has fluctuated. The HBA picked up by 0.28 percent to USD67.08 per tonne in March 2020 compared to February 2020 which was set at USD66.89 per ton.

The HBA continued to weaken to USD65.77 per tonne in April and USD61.11 per tonne in May. In June 2020, the HBA again fell, this time to USD52.98 per tonne, July USD52.16 per tonne, and August USD50.34 per tonne. After falling to USD49.42 per ton in September, the HBA had climbed in October and November 2020.

This benchmark price of USD55.71 per tonne will be used for direct (spot) trade of coal commodities in November 2020 on a Free-on-Board (FOB) vessel basis. (IY)

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

Agung Pribadi (08112213555)

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