Reference Coal Price Surpasses Physiological Level of US$80 a Ton

By Editorial Team 05/02/2021
Summary

The Ministry of Energy and Mineral Resources (ESDM) set the February 2021 reference coal price (HBA) at US$87.79 per ton, 15.7 percent higher from the January HBA at US$75.84 per ton. "There is a commodity supercycle sentiment, including increased gas prices, which also strengthens coal prices," Head of the Ministry of Energy and Mineral Resources' Communication, Public Information Service and Cooperation Bureau Agung Pribadi said in a written statement, Thursday (2/4).

Agung said the low-interest rates, weak US dollar, and the economic growth and infrastructure development in various countries triggered the supercycle this year in various commodities, particularly those in the mining sector. In addition to the supercycle factor, soaring demands from China had also contributed to higher HBA. "Domestic (China) coal supply cannot meet power plants' demands," he said.

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