Indonesia raises second-half May coal benchmark prices

By Ranuh Rafiani Putri

The Ministry of Energy and Mineral Resources has raised its reference coal prices (HBA) for the second half of May, with benchmark prices increasing across all coal grades from the early-May period, according to a ministry decree.

The prices were published on the website of the Directorate General of Mineral and Coal and seen by Petromindo.com on Saturday.

The benchmark HBA for coal with a calorific value of 6,322 kcal/kg GAR was set at $116.32 per tonne for the second half of May, up from $106.57 per tonne in the first-half May period.

HBA I, with a calorific value of 5,300 kcal/kg GAR, was set at $80.34 per tonne, compared with $79.56 per tonne previously.

Read also: Indonesia sets early-May coal benchmark prices higher across all grades

HBA II coal, with a calorific value of 4,100 kcal/kg GAR, rose to $57.61 per tonne from $55.66 per tonne in the prior period.

Meanwhile, HBA III, the lowest calorific grade at 3,400 kcal/kg GAR, increased to $39.35 per tonne from $38.76 per tonne previously.

Indonesia revises its coal benchmark prices twice a month. The HBA is widely used as a reference for coal sales transactions and as the basis for calculating state royalties.

The latest increases extend gains seen in the first half of May, indicating continued strength in benchmark coal prices.

Editing by Reiner Simanjuntak