Jakarta (Indonesia Window) – Indonesia’s benchmark coal price in November rose by 33 percent, or 53.38 U.S. dollars per ton, to 215.01 U.S. dollars per ton, compared to that of last month at 161.63 U.S. dollars.

This increase was influenced by the upcoming winter and the coal crisis in China, which affected global coal prices.

"This price is the highest in decades. The demand from China continues to increase following the onset of winter, as well as bad weather that has disrupted coal production and transportation in coal-producing provinces," said the spokesperson of the Indonesian Ministry of Energy and Mineral Resources, Agung Pribadi, here on Monday (Nov. 8).

In addition, the increase in natural gas prices has also an influence in determining global coal prices.

"Supercycle still pushed up prices for basic commodities due to the new global economic growth after the pandemic," Agung explained.

The benchmark coal price continued to experience an extraordinary rally throughout 2021. Opened at the level of 75.84 dollars per ton in January, the coal price rose in February to 87.79 dollars per ton, then fell in March to 84.47 dollars per ton.

Furthermore, the coal price continued to increase in a row until November 2021.

The benchmark coal price in April was recorded at 86.68 dollars, May (89.74 dollars), June (100.33 dollars), July (115.35 dollars), August (130.99 dollars), September (150.03 dollars), and October (161.63 dollars).

Indonesia’s 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 equivalent to 6322 kcal/kg GAR calories, total moisture 8 percent, total sulfur 0.8 percent, and ash 15 percent.

The November benchmark coal price will be used to determine the price at the point of sale on a Free On Board (FOB Vessel) for the next one month.

Reporting by Indonesia Window