Jakarta (Indonesia Window) – The Indonesian benchmark coal price in October 2021 rose again, reaching 161.63 U.S. dollars per ton.
This figure is influenced by the increasing demand for coal from China following the increasing needs for coal for power plants that exceed domestic supply capacity.
“The increase in benchmark price in October 2021 was also due to the constant rise in demand from South Korea and the European region as the natural gas price is climbing,” a spokesperson of Indonesia’s Ministry of Energy and Mineral Resources, Agung Pribadi, said here on Tuesday (Oct. 6).
Had been sloping in February-April 2021, the Indonesian benchmark coal price recorded a consecutive increase in May-September 2021. This increase continued to be steady until October 2021 with a new high record.
The Indonesian benchmark coal price is the price obtained from the average of the Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt’s 5900 in the previous month, with quality equivalent to 6322 kcal/kg GAR calories, total moisture of 8 percent, total sulfur of 0.8 percent, and ash of 15 percent.
The October benchmark coal price will be used to determine the price of coal at the point of sale on a Free On Board basis on a carrier vessel (FOB Vessel).
Reporting by Indonesia Window