ASIA SPOT LNG: Japan Korea Marker up at $16.525/MMBtu on residual demand
Singapore (Platts)--9Sep2011/701 am EDT/1101 GMT
Asian spot LNG prices ended the week higher at $16.525/MMBtu, on the back of residual demand for October shipments as the remaining buyers were left with dearer cargoes for the period after deals were heard concluded recently.
Platts October Japan Korea Marker started the week at $16.10/MMBtu.
A North Asian utility source said his company secured an early October delivery cargo for less than $16/MMBtu one to two weeks ago.
A source close to another North Asian utility said the company secured a late-October delivery cargo last week, but declined to reveal if the price was more or less than $16/MMBtu.
An end-October cargo from Norway's Snohvit was sold into Japan last week in the low $16s/MMBtu, another source said, but declined to comment further on the name of the buyer. Residual demand for October shipments could come from China's PetroChina, Taiwan's CPC and West Asia, on top of Japanese importers.
A utility source said spot prices for cargoes delivering into Japan and Korea would command a premium of 40-50 cents/MMBtu over Chinese prices, but Chinese buyers could bid up to $16/MMBtu for an October shipment.
Platts DES West India October ended the week at $14.90/MMBtu, up from Monday's $14.45/MMBtu, as buyers in the region had to compete for the remaining October shipments with North Asian buyers.
"$14.70-15/MMBtu could be seen as the deal level for an October delivery cargo on a netback basis from spot prices in North Asia," a South Asian utility source said, but added that domestic consumers still considered prices above $13/MMBtu too high. A South Asian buyer said his company could bid below $14/MMBtu for an October shipment, after securing a cargo for the same period a week ago.
First-half November was firmer at $16.85/MMBtu, gaining 50 cents from Monday, with the contango to H1 October widening to 50 cents/MMBtu.
Sources variously said October demand was almost fully covered, especially with October closing in. They added that buyers' attention was on November shipments, and some had already began spot procurement.
"November could see higher prices as companies are also stocking up cargoes [on top of replacing lost nuclear power]," a trader said.
"November is the shoulder month, so buyers will be looking to stock up cargoes for winter," a utility source said.
Platts FOB Middle East was higher at $14.25/MMBtu Friday, after starting the week at $13.80/MMBtu.
The Asia Pacific Day Rate was stable at $94,000/d Friday.
--Chloe Hang, chloe_hang@platts.com |
