Indonesia's Ministry of Energy and Mineral Resources (ESDM) has set the reference coal price (HBA) at $281.48/t for December 2022, falling 8.67% or $26.72/t from November's $308.2/t, the lowest in seven months.
The December price still surged 76.16% from $159.79/t a year ago.
The price decline is partly caused by India's plan to cut coal-fired power generation capacity, energy minister Arifin Tasrif said. He added China's COVID control policy and weaker power demand also contributed to the reduction.
Increased domestic coal output and slowed economy rise in China, tight relation in Europe and natural gas fluctuations caused by Russia-Ukraine conflict also brought downside pressure to HBA price.
The HBA price for thermal coal is the basis for determining the prices of 77 Indonesian coal products and calculating the amount of royalty producers have to pay for each tonne of coal sold. It is based on 6,322 kcal/kg GAR coal with 8% total moisture content, 15% ash as received and 0.8% sulfur as received.
(Writing by Rebecca Liu Editing by Tammy Yang)
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