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Monday, 11 October 10
OCTOBER INDONESIAN COAL PRICE REFERENCE UP BY 2.92 PERCENT


COALspot.com: The Directorate General of Mineral, Coal and Geothermal of Indonesia has been publishing a monthly coal price reference (HBA) since February  2010 to be used by coal producers for all future spot and term coal sales contracts.

Coal price reference (HBA) was calculated from the monthly average of four international coal indices such as  Indonesian coal Index / ICI 1,  Platts-1,New Castle Export Index and Newcastle globalCoal Index. According to djmbp,  the October Indonesian coal price reference was calculated based on 25% of ICI-1 + 25% of Platts-1 + 25% of NEX and 25% of GC.

Assessment basis of coal price reference was calculated considering coal with GCV (GAR)  6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8%, Ash Content 15.00% and  delivery free on Board (FOB) Vessel.

The declared coal price reference for October 2010 is US$ 92.68  per Ton FOB vessel up by US$ 2.63 or 2.92 percent from September  2010 Coal price reference. September  2010 coal price reference was at US$ 90.05.The coal price reference, which has been established to fulfill the requirement of mining law 04/2009 and latest
ministerial decree 17/2010 and aims to increase government revenue from royalties from coal producers. However, the actual physical market condition of Indonesian coal is stable or stable to firm instead of falls of International coal index as well as HBA.

According to coal producers, due to tight availability of coal for various reasons and recent new inquires from Korea, Taiwan and India, the actual physical coal prices of Indonesia are showing positive move and heading to north.

Click here for complete details of Indonesian coal price reference
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