Jakarta (Indonesia Window) – Indonesia’s benchmark coal price in January 2022 fell to 158.50 U.S. dollars per ton, or decreased by 1.29 dollars per ton from 159.79 dollars per ton in December 2021.

One of factors triggering the decline in January’s price this year was the increase in China’s domestic coal production.

"The Chinese government is seeking to increase its coal production in order to meet domestic demands, causing the rise in domestic coal stocks," Ministry of Energy and Mineral Resources’ spokesperson Agung Pribadi said here on Thursday (Jan. 6).

Throughout 2021, the benchmark price rapidly increased and even reached the highest level in the last decade.

Opened at 75.84 dollars per ton in January 2021, the coal price rose in February to 87.79 dollars per ton, then fell in March to 84.47 dollars per ton.

Furthermore, the benchmark price continued to increase in a row until November 2021 at 215.01 dollars per ton.

The benchmark coal price is obtained from the average index of Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt's 5900 in the previous month, with quality equal to 6322 kcal/kg GAR, total moisture 8 percent, total sulfur 0.8 percent, and ash 15 percent.

This reference price will be used directly in the sale and purchase of coal commodities (spot) for one month at the point of delivery of sales on a Free On Board basis on a transport vessel (FOB Vessel).

Reporting by Indonesia Window