August 2022 Reference Coal Price Increases by $321.59 per Ton Driven by Uncertainty of European Gas Supply

- 03 August 2022 14:29 WIB
Trucks lined up in a quarry. (Photo/
Trucks lined up in a quarry. (Photo/

JAKARTADAILY.ID – The Reference Coal Price (HBA) in August 2022 increased by US$2.59 per ton from the previous month to $321.59 per ton. The condition of the European gas supply has a big influence in determining the HBA increase in August 2022.

"The price of liquefied natural gas in Europe continues to climb following the uncertainty of gas supply. Some European countries have even reactivated coal power plants in anticipation of an electricity crisis," said Head of the Communications, Public Information and Cooperation Bureau (KLIK) of the Ministry of Energy and Mineral Resources, Agung Pribadi on Tuesday, August 2, 2022.

Another factor is the surge in coal demand from China, India, and South Korea.

Also read: As War Weighs Heavy, Indonesia Stands Ready to Fulfill Coal Demands from the EU 

"This is because Russia offers a discount on coal prices," he said.

He further explained that the increase recorded a positive trend in coal prices throughout 2022. In January 2022, the HBA was set at $158.50/ton, rising to $188.38/ton in February.

Furthermore, March reached $203.69/ton, April was at $288.40/ton, May was at $275.64/ton, and June was at USD323.91/Ton.

"Last month (July) it had dropped to $319/ton. In August 2022, the HBA rose to $321.59/ton," said Agung.

Also read: Indonesian Minister of Energy and Mineral Resources: It Is Time for Indonesia to Adapt

HBA itself is a price obtained from the average index of the Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt's 5900 in the previous month, with quality equivalent to 6322 kcal/kg GAR calories, Total Moisture 8 percent Total Sulfur 0.8 percent and Ash 15 percent.

Agung added that the increase in the August HBA was also influenced by the increase in the average monthly index that composes the HBA, namely: NEX rose 3.75 percent, GCNC rose 3.32 percent, and ICI fell 3.94 percent, and Platt's fell 3.58 percent.

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Editor: Suksmajati Kumara


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