One more variable that likewise affected the rise in benchmark coal cost was the rise in coal needs from China, India and South Korea.
Indonesia’s benchmark coal rate in August 2022 increased 2.59 U.S. dollars per heap from the previous month, to 321.59 U.S. dollars per load, with the gas supply to Europe having a huge impact in establishing the benchmark price development this month.
The cost of liquefied gas in Europe remains to climb up complying with the unpredictability of gas supply. Some European countries have also reactivated their coal-fired nuclear power plant to prepare for the electricity crisis,the Indonesian Ministry of Energy and also Mineral Resources’ speaker Agung Pribadi said in a statement received right here on Wednesday
One more element that likewise affected the increase in benchmark coal price was the surge in coal needs from China, India and also South Korea, Agung continued, saying, “this is due to the fact that Russia supplies a discount rate on coal prices”.
The increase in August further specifies the favorable fad in coal costs throughout 2022.
In January 2022, the benchmark coal rate was evaluated 158.50 bucks per ton, then rose to 188.38 bucks per lot in February.
Later on in March, the benchmark coal price touched 203.69 bucks per ton, after that rose to 288.40 dollars per lot in April.
In May, the benchmark coal cost dropped at the level of 275.64 bucks per bunch, yet climbed once more in June to 323.91 dollars per load.
“Last month (July) it dropped to 319 dollars per ton. However, in August 2022, the benchmark coal price rose to 321.59 bucks per lot,” Agung noted.
The Indonesian benchmark coal price is gotten from the ordinary index of Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and also Platt’s 5900 in the previous month, with high quality equivalent to 6322 kcal/kg GAR calories, Complete Wetness 8 percent, total sulfur 0.8 percent, as well as ash 15 percent.
Agung included that the August benchmark coal rate rise was also affected by the rise in the ordinary month-to-month index of the benchmark coal price compilers, specifically NEX rose 3.75 percent, GCNC rose 3.32 percent, ICI fell 3.94 percent, and also Platt’s dropped 3.58 percent.
There are two derivative variables that affect Indonesia’s benchmark coal cost, specifically, supply and demand.
The supply aspect is influenced by climate, mining techniques, supplier country policies, and supply chain trivialities such as trains, barges, along with loading terminals.
At the same time, the need aspect is affected by electricity demand decrease, which correlates with commercial problems, import policies, and also competition with other energy commodities, such as LNG, nuclear, and hydropower.
Furthermore, the Indonesia federal government likewise set a residential criteria coal cost particularly for power at 70 dollars per ton and also for industrial fuel requires at 90 bucks per bunch.
“This step keeps the competitiveness of the residential industries as well as makes sure the affordability of industrial productions for people,” Agung said.