Platts: Asia Spot LNG Prices for May Delivery Fell 12.3% on Low Demand On a year-over-year basis, May prices were down 3.3% versus 2012

SINGAPORE, April 17, 2013 /PRNewswire/ -- Prices of liquefied natural gas (LNG) for May delivery to Asia fell 12.3% to $15.464 per million British thermal units (/MMBtu) on decreased demand, according to the latest monthly Platts Japan/Korea Marker (JKM) for month-ahead delivery. The monthly average Platts JKM for delivery in May was assessed over the period of March 18 to April 15.

The May-delivery price decline followed a 7.9% price drop for April delivery and marked the second consecutive month-over-month drop in spot LNG price due to weak demand during the so-called shoulder months, between the winter and summer peak LNG demand seasons in North Asia.

On a year-on-year basis, the May Platts JKM was down 3.3% from the 2012 May-delivery level of $15.986/MMBtu, which was held high by demand outstripping the limited supplies from the Pacific and Atlantic Basins.

"This year, supplies were more than enough to satisfy North Asia's smaller appetite for spot cargoes," said Sarah Cottle, editorial director of power, Asia and Europe, for Platts, a leading global energy, petrochemicals and metals information provider and a premier source of benchmark price references. "Besides the comfortable weather easing price pressures, buyers had accumulated sufficient inventory in advance and addressed spot procurement needs early," Cottle explained, "such that there was less competition for May cargoes later in the month and prices eased."

Meanwhile, the month-ahead spot prices of thermal coal and fuel oil, which are substitute fuels burned by Asian utilities, dropped 1.2% and 1.8%, respectively, according the Platts' latest month-over-month data for May.

 

Platts Spot JKM and Substitute Fuel Prices (Monthly Averages)*


May-13

May-12

April-13

Year-On-Year
Change %

Month-On-Month
Change %

JKM ($/MMBtu)

15.464

15.986

17.636

-3.3

-12.3

Qinhuangdao coal ($/MMBtu)

4.06

5.15

4.11

-21.3

-1.2

180 CST fuel oil ($/MMBtu)

16.13

19.04

16.42

-15.3

-1.8

Source: Platts

 

*Referred to as month-ahead, the figures in the table are monthly averages of daily values assessed by Platts from

 March 18th to April 15th.  The Platts JKM rolls on the 16th of each calendar month

 

The Platts JKM is an assessment of LNG prices for spot cargoes delivered to Japan and South Korea, based on the most recent trades and/or bids and offers from buyers and sellers in the open market prevailing at the close of the trading day. The monthly JKM assessments are month-ahead delivered prices and are an average of the daily JKM price assessments reported by Platts.

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 15th of each month.

About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals, metals and agriculture information and a premier source of benchmark prices for the physical and futures markets.  Platts' news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency.  Customers in more than 150 countries benefit from Platts' coverage of the biofuels, carbon emissions, coalelectricityoil, natural gas, nuclear powermetals, petrochemical, shipping and sugar markets.  A division of The McGraw-Hill Companies (NYSE: MHP), Platts is headquartered in New York with approximately 900 employees in more than 15 offices worldwide. Additional information is available at http://www.platts.com.

About The McGraw-Hill Companies: The McGraw-Hill Companies, to be renamed McGraw Hill Financial (subject to shareholder approval), is a powerhouse in credit ratings, benchmarks and analytics for the global capital and commodity markets. Leading brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power and Associates, McGraw-Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mcgraw-hill.com.

 

CONTACT
Kathleen Tanzy
212-904-2860
Kathleen_tanzy@platts.com  

 

SOURCE Platts



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