JAKARTA – Starting in 2021, the reference coal price (HBA) has jumped US $ 16.19 per ton to US $ 75.84 per ton or an increase of 27.14% compared to the HBA in December 2020 of US $ 59.65 per ton.
Agung Pribadi, the Head of the Communication Bureau for Public Information Services and Cooperation at the Ministry of Energy and Mineral Resources (ESDM), said that the main factor in the significant increase in coal was due to the resumption of industrial activity in China.
“After almost a year of limited economic activity, the market began to move to recover, especially in China,” said Agung in Jakarta, Monday (4/1).
According to Agung, the Bamboo Curtain country has an important role in influencing the price of coal because it is the main market for Indonesian coal after India.”Moreover, currently there is a tension in trade relations between China and Australia.This sentiment is what strengthens, “said Agung.
For information, the derivative factor ofsupply isinfluenced by the season (weather), mining engineering, supplier country policies, tosupply chaintechnicalitiessuch as trains, barges, and loading terminals.
The derivative factor ofdemand isinfluenced by the decreasingdemandfor electricity which is correlated with industrial conditions, import policies, and competition with other energy commodities, such as LNG, nuclear, and hydro.
Later, the January 2021 HBA will be used to determine the price of coal at the point of delivery of free on board sales on a carrier vessel (FOB Vessel).
According to Agung, the HBA movement is moving towards a fairly reasonable level after throughout 2020 due to the Covid-19 pandemic experiencing more weakness to its lowest level.”The average HBA 2020 is only US $ 58.17 per ton and is the lowest since 2015,” said Agung.
Agung said that the coal price opened at US $ 65.93 per ton in January 2020. It had strengthened by 0.28% to US $ 67.08 per ton in March compared to February which was at US $ 66.89 per ton, but it dropped at US $ 67.08 per ton. April (US $ 65.77), May (US $ 61.11), June (US $ 52.98), July (US $ 52.16) and August (US $ 50.34).”The peak was in September where the price was only US $ 49.42 per ton,” he said.
Coal prices have rebounded in the last three months, namely October (US $ 51), November (US $ 55.71) and December (US $ 59.65).”Supply and demand remain the main (price) change factors outside of Covid-19, which have not been fully controlled,” said Agung. (RI)