Asia’s Q1 LNG Outlook Clouded: Platts

Mild temperatures and sustained high stock levels among Asian utilities are clouding the post-winter market outlook for Asian LNG, according to Platts.

• "Chinese buyers appeared unaffected by the current cold snap as many factories and schools were already closing down in preparation for the approaching Lunar New Year festive season," a Chinese importer told Platts.
• Over 30 spot cargoes have traded in Asia in the past two weeks, but most of these tenders or bilateral trades were opportunistic purchases, Platts added.
• Lower JKM prices, last assessed at $9.544/MMBtu, will benefit Chinese buyers whose domestic trucked prices are above JKM. Meanwhile, the profit margins for Korean buyers are positive.
• The current market is mirroring Q4’s demand, with major headwinds ahead.
• Freight markets for LNG remain weak despite issues at the Suez and Panama Canal. This is due to the region unable to absorb more cargoes.