According to Reuters, Asian LNG spot prices are continuing to correct drop with potentially steeper dips expected ahead. One of the identified causes is low demand from China and India, contrasted with healthy supply. Recent tender deals appear to confirm the bearish condition of the market.
Spot prices for August LNG-AS delivery in Asia were assessed at US$10 per million Btu. This is 10 cents from the previous assessment and LNG prices may be a shade lower heading into September.
Chinese buyers may be waiting for prices to fall further before wading into the spot market, however, total LNG imports into China remain brisk.
Lower prices may also tempt Indian buyers back into the market but for now demand remains limited with only Gail recently wrapping up a tender purchase for a single late July cargo.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/16072018/lng-spot-prices-in-decline/