Coal Benchmark Price Rises 4.6% in July

Indonesia’s benchmark coal price (HBA) rose 4.6% month-on-month (m/m) to US$78.95 per metric ton in July 2017. Compared to one year ago the HBA price has risen 49%, hence it is a more favorable environment for coal miners. However, the future direction of the coal price is very hard to predict as it highly depends on Chinese policies. The coal price is currently being supported by China’s government. Authorities in the world’s second-largest economy curbed coal production in an attempt to let the coal price rise.