Asian spot prices inch up amid emerging demand
By Emily Chow
SINGAPORE, Oct 18 (Reuters) -Asian spot liquefied natural gas (LNG) gained for the first time since end-August this week, supported by emerging spot demand across the region.
The average LNG price for December delivery into north-east Asia LNG-AS rose to $13.50 per million British thermal units (mmBtu), industry sources estimated, its first weekly gain in six weeks.
"Active buyers in the current spot buyers are primarily from South and Southeast Asia... Some Japanese players have also entered the market for LNG procurement for December deliveries," said Siamak Adibi, director for gas and LNG supply analytics at consultancy FGE.
Despite the spot market activity, overall market sentiment has not changed dramatically, added Adibi, as European gas storage levels remain above 95%, reducing competition with Asia for cargo procurement.
"The prompt market sentiment remains bearish for now."
Recent tenders include one from Thailand's Hin Kong Power, B.Grimm Power and state-controlled PTT, all for cargoes delivered in December, said a Rystad Energy report.
"With Thailand's monsoon season typically ending in October, reduced rainfall may mean less hydropower generation going forward, resulting in an increased reliance on gas-fired generation."
The report added that Northeast Asian players are likely to see a slow start to the heating season as temperatures remain warmer than normal in the period leading up to the start of winter, while healthy storage levels could mute spot purchases from the region.
In Europe, S&P Global Commodity Insights assessed its daily North West Europe LNG Marker (NWM) price benchmark for cargoes delivered in December on an ex-ship (DES) basis at $12.539/mmBtu on Oct. 17, a $0.175/mmBtu discount to the December gas price at the Dutch TTF hub.
Argus assessed the price for December delivery at $12.50/mmBtu, while Spark Commodities assessed the price for November delivery at $12.332/mmBtu.
"High storage and steady output could see prices fall back significantly over winter in the event of mild weather like that of the last two years," said Alex Froley, senior LNG analyst at ICIS, adding that U.S. supply is also improving with Cove Point returning from planned maintenance and Hurricane Milton not affecting LNG production.
"However, uncertainty over the Middle East conflict and U.S. elections and the ongoing weather risk at this early stage of the season could see people reluctant to move too far yet."
In LNG freight, Atlantic prices dropped to $26,750/day on Friday, its largest week-on-week drop since January, said Spark Commodities analyst Qasim Afghan.
Pacific rates also declined, easing for a tenth straight week, to $42,250/day.
Reporting by Emily Chow; Editing by Janane Venkatraman
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Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
