November 2021 HBA Hits USD215.01 per tonne

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 399.Pers/04/SJI/2021

Date: 8 November 2021

November 2021 HBA Hits USD215.01 per tonne

The Indonesian Coal Benchmark Price (HBA) for November 2021 surges by USD53.38 or 33% to USD215.01 per tonne compared to the October HBA of USD161.63.

"This is the highest HBA in decades. Demand from China is on the increase because the arrival of winter and bad weather have disrupted coal production and transportation activities in coal-producing provinces," said Head of Bureau of Communication, Public Information Services, and Cooperation of the Ministry of Energy and Mineral Resources (EMR), Agung Pribadi, in Jakarta, on Monday (8/11).

Agung went on to say that other commodity factors, for example the increase in natural gas prices, also affect the determination of global coal prices. "The supercycle still has an influence on lifting up basic commodity prices due to global economic growth after the pandemic," explained Agung.

The HBA has rallied remarkably throughout 2021. Set at USD75.84 per tonne in January, the HBA soared to USD87.79 per tonne in February, then lowered to USD84.47 per tonne in March. The HBA was continuously on the increase until November 2021, that is, the April HBA was set at USD86.68, May at USD89.74, June at USD100.33, July at USD115.35, August at USD130.99, September at USD150.03, and October at USD161.63.

For the record, the HBA refers to an average price of four indeces, namely Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt's 5900 of the previous month, with a quality made equivalent to 6,322 kcal per kg GAR, Total Moisture 8%, Total Sulphur 0.8%, and Ash 15%.

There are two derivative factors influencing the HBA movement, namely supply and demand. The derivative factors of supply include season, mine technicalities, the policies of the supplying countries, and supply chain technicalities such as train, barge, and loading terminal.

Meanwhile, the derivative factor of demand is a lower electricity need due to industrial condition, import policies, and competition with other energy commodities such LNG, nuclear, and hydro.

The November HBA will be used to determine coal price on a basis of Free on Board (FOB) the vessel for the next month. (IY)

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

Agung Pribadi (08112213555)

Share This!