*Having bottomed out at a record low $2/mn BTU in summer 2020 (MEES, 12 June), spot LNG prices for core Asian markets edged higher to around $5/mn BTU in the autumn. This was just the beginning, in recent weeks prices have soared. Reuters spot price assessments for January-delivery cargoes (mid-November to mid-December assessments) averaged $8.25/mn BTU, the highest level in almost two years. And in recent days prices have gone through the roof. Reuters’ 11 December assessment of $11.10/mn BTU was up $3 on a week earlier, whilst Platts assessed its JKM marker at a six-year high $12.40/mn BTU on 15 December, the last day of front-month January assessments.
*Compared to these spot assessments, the latest official import stats are lagging indicators. Japanese buyers paid an average of $6.80/mn BTU for spot cargoes purchased in November, roughly corresponding to December-arrival. Among key importers, only South Korea and Taiwan have to-date released comprehensive import stats for November. These show average prices climbing – to $6.18/mn BTU for Korea, and $5.56/mn BTU for Taiwan – but by nothing like the extent seen in the latest spot trade (see chart 1). (CONTINUED - 1145 WORDS)
