Platts: Prices of Asia LNG for April Delivery Fell 7.9% on Weak Asian Demand
On an annual basis, LNG prices for April Delivery Rose 16.2% from 2012
SINGAPORE, March 22, 2013
SINGAPORE, March 22, 2013 /PRNewswire/ -- Prices of liquefied natural gas
(LNG) for April delivery to Asia fell 7.9% from March to $17.636 per million
British thermal units (MMBtu), the first drop in the monthly average since
October 2012, according to the latest monthly Platts Japan/Korea Marker (JKM)
for month-ahead delivery. Price declines were attributed to weak demand as
traditional buyers relied on previously-negotiated term contract supplies to
meet spring needs, which are seasonally low.
This followed an all-time high of $19.85/MMBtu in March and the month's
average of $19.139/MMBtu, which was buoyed by South America's competing strong
demand. The monthly JKM assessments are prices of LNG for month-ahead delivery
to Asia and are an average of the daily JKM price assessments reported by
Platts. The monthly average Platts JKM for delivery in April was assessed
between February 18 and March 15.
"With buyers in such key markets as Japan and South Korea amply covered by
term contract supplies for April, those who have some space for additional
cargoes have the flexibility to wait on the chance that prices will come
down," said Sarah Cottle, Platts editorial power director, Asia and Europe.
"Furthermore, it appears LNG sellers have plenty of ready supply available for
April delivery, despite ongoing power outages at both Nigeria LNG and Norway's
Hammerfest LNG plants."
On a year-on-year basis, the April Platts JKM was up 16.2% from last April's
$14.775/MMBtu, marking the third consecutive month of year-over-year gains.
Meanwhile, the month-ahead prices of thermal coal and fuel oil, which are
substitute fuels burned by Asian utilities, dropped 1.6% and 0.8%,
respectively, according to Platts' latest monthly data.
Platts Spot JKM and Substitute Fuel Prices (Monthly Averages)*
Apr-13 Apr-12 Mar-13 Year-On-Year Month-On-Month
Change % Change %
JKM ($/MMBtu) 17.636 15.180 19.139 16.2 -7.9
Qinhuangdao coal ($/MMBtu) 4.11 5.09 4.17 -19.4 -1.6
180 CST fuel oil ($/MMBtu) 16.42 19.26 16.55 -14.7 -0.8
*Referred to as month-ahead, the figures in the table are monthly averages of
daily values assessed by Platts from February 18^th to March 15^th. Platts JKM
rolls on the 16^th of each calendar month.
For more information on natural gas or the methodology used by Platts in its
power assessments, visit the Platts website www.platts.com.
Platts' monthly reports on Asia LNG prices and market developments are
typically published shortly after the 15^th of each month.
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