Indonesian Ministry of Energy and Mineral Resources set the thermal coal price index, also known as the HBA index, at $89.53/t in May, down 5.5% m-o-m but still 6.8% higher y-o-y.
The thermal coal index was set at $94.75/t in April and at $83.81/t in May last year.
The formula is calculated based on the 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.
Source: Ministry of Energy and Mineral Resources