Indonesia's Coal Reference Price Increases by 8.55% in September 2024

The Indonesian Ministry of Energy and Mineral Resources (ESDM) has set the Indonesian Coal Reference Price (HBA) for September 2024 at US$125.15 per ton.

This price is an 8.55% increase from August 2024, which was US$115.29 per ton. However, the September 2024 reference price is still 6% lower year-on-year (yoy) compared to September 2023, which was US$133.13 per ton.

Prices for coal derivatives have shown a downward trend.

HBA I is set at US$85.01 per ton in September 2024, down from US$86.2 per ton in August 2024.

HBA II is set at US$53.26 per ton in September 2024, down from US$54.63 per ton in August 2024.

Finally, only HBA III increased. Its price is US$35.89 per ton in September 2024, a slight increase from US$35.62 per ton in August 2024.

This reference price is determined by Indonesian Minister of Energy and Mineral Resources Regulation (Kepmen ESDM) Number 231.K/MB.01/MEM.B/2024 concerning the Reference Price of Metal Minerals and Coal Reference Price for September 2024, issued on September 20, 2024.

Previously, the HBA was determined based on the average of the Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt's 5900, with quality equated to a calorific value of 6,322 kcal/kg GAR, total moisture 8%, total sulfur 0.8%, and ash 15%.

The HBA is also differentiated into four categories based on coal quality, namely:

* HBA: calorific value equivalent of 6,322 kcal/kg GAR, total moisture 12.26%, total sulfur 0.66%, and ash 7.94%.
* HBA I: calorific value equivalent of 5,300 kcal/kg GAR, total moisture 21.32%, total sulfur 0.75%, and ash 6.04%.
* HBA II: calorific value equivalent of 4,100 kcal/kg GAR, total moisture 35.73%, total sulfur 0.23%, and ash 3.90%.
* HBA III: calorific value equivalent of 3,400 kcal/kg GAR, total moisture 44.30%, total sulfur 0.24%, and ash 3.88%.

(Also read: Indonesian Coal Reference Price Falls 11.61% in August 2024)