Indonesia continued to cut its thermal coal reference price (HBA) for June, the third straight month since it used a new formula, with high-CV coal prices down below $200/t, according to the latest data from the country's Ministry of Energy and Mineral Resources.
The HBA, based on 6,322 Kcal/kg GAR, was set at $191.26/t for June, down $14.9/t from the May level. The price is used as reference for thermal coal with CV above 6,000 Kcal/kg GAR.
The HBA I (5,200 Kcal/kg GAR) dropped $7.05/t month on month to $112.59/t. This is used to gauge price for coal with CV between 5,200-6,000 Kcal/kg GAR.
The HBA II (4,200 Kcal/kg GAR) fell $3.88/t from May to $78.35/t, using as a reference for products with CV below 5,200 Kcal/kg GAR.
The new HBA calculation is based on the average traded price of coal over the previous two months, with 70% weight given to the previous month's prices and 30% to those of two months earlier.
(Writing by Rebecca Liu Editing by Harry Huo)
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