After having fallen over the past two months, Indonesia’s benchmark thermal coal price (HBA) managed to rebound in June 2018. The HBA, a monthly price that is determined by Indonesia’s Energy and Mineral Resources Ministry (and which is based on several global and domestic indexes), was set at US$96.61 per ton in June 2018, up from US$89.53 in the preceding month.
Agung Pribadi, spokesman of Indonesia’s Energy and Mineral Resources Ministry, said the higher coal price comes on the back of coal production restrictions in China as well as the impact of rising global crude oil prices. After touching above US$100 per metric ton in February and March 2018 the benchmark Indonesian coal price has now erased most of the gains in 2018. However, compared to one year ago (May 2017) the price is up 28%.