Indonesia Cuts Power-Station Coal Price to 18-Month Low

Indonesia, the world’s largest exporter of power-station coal, cut its benchmark price for the fuel to the lowest level in 18 months.

Coal with a gross heating value of 6,322 kilocalories per kilogram cost $102.12 a metric ton on a free-on-board basis in May, down 3.3 percent from $105.61 in April, the Directorate General of Coal and Minerals at the ministry said today in a statement on its website. That is the lowest price since November 2010, according to the ministry’s data.

Below is a list of price references used to calculate the cost of coal of similar quality in Indonesia, compiled by the energy ministry. Grades are in kilocalories a kilogram and prices are in dollars a ton.

                        May    April   March    Feb.     Jan.
================================================================
Price Reference        102.12  105.61  112.87  111.58   109.29
Month-on-Month (%)       -3.3    -6.4     1.2     2.1     -3.0
================================================================

Price Markers
================================================================
Coal Brands         Grade                Price
                             May    April     March    Feb
================================================================
Gunung Bayan I      7,000  109.81  113.59    121.46   120.06
Prima Coal          6,700  108.32  111.86    119.22   117.91
Pinang 6150         6,200   97.67  100.85    107.47   106.30
Indominco IM_East   5,700   83.33   86.15     92.02    90.97
Melawan Coal        5,400   79.08   81.59     86.81    85.89
Envirocoal          5,000   73.28   75.50     80.12    79.30
Jorong J-1          4,400   59.07   60.87     64.60    63.94
Ecocoal             4,200   53.66   55.26     58.58    57.99
================================================================

Note: Percentage changes are calculated by Bloomberg News. The price reference is an average of the Indonesia Coal Index, Platts-1, Newcastle Export Index and the globalCOAL NEWC Index from the previous month. The average of the price reference for the last three months is used to set prices for a one-year contract for the following year. For sales in barges, the reference price excludes the cost of barging and transshipment into the vessel.

To contact the reporter on this story: Fitri Wulandari in Jakarta at fwulandari@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.