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Wednesday, 03 April 13
HBA HAS LOST US$ 1.53 PER MT IN APRIL 2013


COALspot.com -  The Indonesian government’s declared coal bench mark price has lost $1.53 / MT in April 2013.

The monthly coal reference price for coal sales in April 2013 lost 1.70 percent compared to last month. The Ministry of Energy & Mineral Resources of Indonesia sets the coal’s spot price for April 2013  at US$ 88.56 per ton, US$ 1.53 lower than March 2013 bench mark Price.

HBA is on a rising trend since November 2012, but lost this month.

This coal benchmark price was calculated based on calorific value of 6,322 kcal/kg (GAR), stated to be using formula based on the March 2013 index average of ICI-1 (Indonesia Coal Index) 25%, Platts-5900 25%, NEX (Newcastle Export Index) 25%, and GC (globalCoal Index) 25%.

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% (arb), Ash Content 15 % (arb) and  delivery free on Board (FOB) Vessel basis and applicable for spot contract, delivery between 1 – 30 April 2013.

The government of Indonesia has been publishing a monthly coal reference price (HBA & HPB) since January 2009 to be used by coal producers for all spot and term contracts. However, the full implementation of HBA has started only since September 2011.

The April 2013 HBA is 16.14 percent or $ 17.05 lower Y-o-Y basis.

All time high HBA was declared in February 2011 (US$ 127.05 / MT) and lowest was declared in May 2009 (US$ 62.83/ MT).

The price was only valid for the spot price (loading on or before 30 April 2013), while as for term price (up to 12 months supplies), the average reference price (HPB) of the previous three months will be used to determine the selling price. (50% of the latest available month HPB, 30% of one month prior HPB and 20% of two-month prior HPB).

Government also declared reference price for eight brands of Indonesia's coal, which are most commonly traded in the market. Those eight brands are acted as the benchmark and used to calculate other 62 coal types with a quality similar to the coal price markers.

For sales in the barge, the reference price is reduced by barging and transshipment costs from barge to vessel.

The coal reference price, which has been established to fulfill the requirement of mining law 04/2009 and latest ministerial decree 17/2010 and also aims to increase government revenue from royalties from coal producers. According to industry, all existing coal supply agreements with Indonesian coal mining companies have been revised to comply with new coal pricing regulation, which was fully implemented on 23 September 2011.

Click here for complete Indonesian coal reference prices since January 2009.(cs)



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