JAKARTA (RambuEnergy) – Indonesia’s Ministry Energy and Mineral Resources (MEMR) has set its October coal reference price at 100.89 per ton, 3.74% lower from September, partly driven by lower demand from China, Indonesia’s major coal buyer.
The October coal price, however, was 7.34% higher from the same month last year of US$93.99 per ton, the ministry’s data showed on Monday.
Spokesperson of the energy ministry Agung Pribadi said that the decline was driven by the decision by the Chinese government to limit the import of coal, including from Indonesia.
“As one of the largest Indonesian coal buyer, the decision certainly has an impact on the coal reference price for this month,” Pribadi said in a statement Monday.
The coal price hit the highest level in August this year, reaching US$107.83 per ton.
The monthly price assessment reflects coal for loading free-on-board at Indonesian ports and is an average of four major world coal indices.
The Indonesian coal price has been on the upward trend in the first eight months to August before edged lower in September and October.
In the first six months to June, the average Indonesian coal price stood at US$96.5 per ton, compared to US$89.8 per ton in the same period last year.
Indonesia produced 163.44 million tons (Mt) of coal in the first six months to June, up 18% from 139 Mt in the same period last year.
In the first eight months, the coal production reached 311 Mt. Of the production, 200 Mt were exported and 102 Mt were sold to the domestic market. In the same period last year, Indonesia produced 194 Mt of coal, 192 Mt of which were exported and 74 Mt were sold to the domestic market.
Recently, the Indonesian energy ministry revised up national coal production target to 510 Mt, up 5.15% from the early target of 485 Mt based on production revision of major coal producers. (*)
Written by Roffie Kurniawan (Email: firstname.lastname@example.org)