Mon, February 12, 2018 9:07 am
Indonesia’s Ministry of Energy and Mineral Resources set February’s thermal coal reference price (HBA) at $100.69/MT FOB last week which was an increase of 21% YoY, and is the highest level since Dec 2016. FOB prices of 4,200 Kcal and 3,800 Kcal Indonesia coals, highly desired by Indian buyers, are up by approx. 10% YoY. Prices for Indonesian supplies are currently being supported by inclement weather conditions in Indonesia where surrounding cities near the capital city Jakarta have been faced with torrential rains, flooding, and landslides; February is the peak rainy season in Indonesia. Thermal prices in Indonesia have also been affected by sustained Chinese demand despite the upcoming Lunar Holiday when prices typically retreat, but buyers in China are inquiring for March cargos so prices are expected to hold through the quarter. The end of the rainy season coupled with the end of the Lunar Holiday leaves uncertainty for direction after March.