Head of the Ministry’s Public Information Service Communication and Collaboration, Agung Pribadi, stated that an increase of US$19.04 per ton was recorded in the reference coal price as compared to US$130.99 per ton in August.
"This is quite a phenomenal figure within the last decade," Pribadi noted in a statement quoted here on Tuesday.
A hike in the reference coal price was on account of China's high demand that surpasses its domestic production capability, growing demand from South Korea and Europe, as well as the increasing price of natural gas, he pointed out.
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After stagnating during the February-April 2021 period, HBA recorded a consecutive rise during the May-July 2021 period until it reached US$115.35 per ton in July 2021.
This increase consistently continued up until September 2021 when it managed to achieve its new highest record.
HBA is the price obtained from the average Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC) and Platt's 5900 in the previous month, with quality equalized to 6.322 kilocalorie per kilogram GAR, eight-percent total humidity, 0.8-percent total sulfur, and 15-percent ash.
Two derivative factors -- supply and demand -- affect the movement of the reference coal price.
The supply factor is affected by weather, mining logistics, supplying country, and supply chain logistics.
Meanwhile, the demand factor is impacted by the requirement for electricity that correlates with the condition of the industry, import policy, and competition with other energy commodity.
In future, this September's HBA will be used to determine the coal price when it is sold free onboard atop the freighter ship.
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Translator: Sugiharto P, Fadhli Ruhman
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