Indonesia's Ministry of Energy and Mineral Resources set its October thermal coal reference price, also known as Harga Batubara Acuan or HBA, at $93.99/t, up $1.96/t or 2.13% from September and $24.92/t or 36.08% compared with the same month last year.
The HBA price had been rising over four consecutive months till October. The reference price in October is much higher than the average price of $82.38/t since the HBA was introduced in 2010. The highest HBA price hit $127.05/t in February 2011 and the lowest at $50.92/t in February 2016.
The HBA is a monthly average price based 25% on the Platts Kalimantan 5,900 kcal/kg GAR assessment; 25% on the Argus-Indonesia Coal Index 1 (6,500 kcal/kg GAR); 25% on the Newcastle Export Index -- formerly the Barlow-Jonker index (6,322 kcal/kg GAR) of Energy Publishing -- and 25% on the globalCOAL Newcastle (6,000 kcal/kg NAR) index.
The HBA price for thermal coal is the basis for determining the prices of 75 Indonesian coal products and calculating the royalty producers have to pay for each metric ton of coal they sell.
It is based on 6,322 kcal/kg GAR coal, with 8% total moisture content, 15% ash as received and 0.8% sulfur as received.
(Writing by William Gao Editing by Harry Huo)
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