The Indonesian government set its coal benchmark price (HBA) for July at $52.16/t, down from $52.98/t last month, the Energy and Mineral Resources Ministry said in a statement on July 3.
The July benchmark price is the lowest since June 2016, according to Refinitiv data.
The price benchmark extended its decline due to rising coal inventories in major markets India and China, the ministry said in the statement, as the coronavirus outbreak hurt demand.
The HBA is a monthly average price based 25% each on Platts Kalimantan 5,900 kcal/kg GAR assessment, Argus-Indonesia Coal Index 1 (6,500 kcal/kg GAR), Newcastle Export Index (6,322 kcal/kg GAR) and globalCOAL Newcastle (6,000 kcal/kg NAR).
The HBA price for thermal coal is the basis for determining the prices of 77 Indonesian coal products and calculating the royalty producers have to pay for each metric ton of coal sold.
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 Becky Du Editing by Tammy Yang)
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