While 6,322 kcal/kg GAR and 4,100 kcal/kg GAR coal prices dropped, 5,300 kcal/kg GAR and 3,400 kcal/kg GAR coal prices increased compared to the previous month. The market's volatility reflects uncertainty about future demand trends, especially as major consuming nations are well-stocked.
The HBA for 6,322 kcal/kg GAR coal fell by 0.71% to $124.95/mt, while the HBA for 5,300 kcal/kg GAR rose marginally to $87.65/mt and the HBA for 3,400 kcal/kg GAR increased to $37.54/mt. Chinese demand is expected to rise following the Lunar New Year holidays.
The Indonesian government introduced multiple coal grade pricing formulas in February 2023, and the current pricing formula is based on actual selling prices from the preceding two months. Prices in the Asian spot market have been rangebound due to lower demand from major buyers like India and China.
Some miners in Sumatra and South Kalimantan are facing logistical issues due to consistent rainfall, leading to supply tightness in the spot market. The Indonesian government has no plans to change the methodology for its benchmark thermal coal reference price, despite some criticism.
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