Indonesia's benchmark coal prices may hit only long-term contracts

The scheduled introduction of benchmark prices — called HBA Index — by Indonesia beginning September 23, may not impact bulk of the users of Indonesian coal in India. yardstick

According to international traders, catering to the vast majority of the users — including some power utilities — through spot buying, coal prices in Indonesia are either at par or higher than the indexed price and, are unlikely to be impacted.

However, the Indian users sourcing coal through long-term offtake agreements at attractive prices much below the HBA Index should be impacted. India is expected to import anything between 70 and 100 million tonnes of Indonesian coal this fiscal.