Japanese LNG Prices Level Off

The average price for spot LNG imports into Japan contracted in November 2018 inched higher to $10.80/mn Btu, the country's trade ministry (Meti) said December 11.

It compares with $10.70 in October, $10.60 in September, $10.70 in August, $10 in July and $9.30 in June 2018 (all per million Btu). After a sharp rise in the summer, the rise in monthly prices has moderated, as demand in China has abated, with some regular vendors in Asia seeking sales to Europe instead. The comparable Meti price for November 2017 was lower at $9/mn Btu.

Trade sources recently assessed the market for spot cargoes to be delivered in one to two months’ time into east Asia in the $9.50-$9.60/mn Btu range, their weakest for several months.

Meti prices are ‘delivered ex ship’ in Japan, or else are converted into such a ‘DES’ equivalent.

Japan’s Meti also published December 11 official average arrivals-based prices  each month for spot LNG cargoes. Latest figures show that November arrivals’ average value was $11.50/mn Btu, up from $10.60 for October and $10.10 for September. They are higher than year ago the $7.10 and $6.10 per mn Btu averages reported for respectively November and October 2017.