Despite the seasonal demand lull, East China still saw an increase in the LNG prices from mid-April, as local LNG terminals continued to push up their sales prices to catch up with the international spot prices, learned from OilChem.
The LNG prices in East China averaged at Yuan 4,404/t by the week ended April 28, up 5.26% from the previous week, data from OilChem showed.
Source: OilChem
As of April 24, the spot imported LNG costs stood at Yuan 3,978/t at Chinese ports, down Yuan 1.31% from Yuan 4,031/t of the previous week, while the imported LNG ex-terminal prices jumped Yuan 116/t or 2.86% to Yuan 4,174/t.
Source: OilChem
The five terminals in East China received 7 cargoe carriers or 487,900 tonnes of LNG during the week ended April 28, down 48.52% from last week's 328,500 tonnes, and the LNG sales volume by truck at coastal terminals dropped 5.8% to 123,100 tonnes, according to OilChem's data.
Source: OilChem
The sales decline was attributed to an increment in the inflow of goods from other regions after the terminals lifted their prices, as well as slowing downstream procurement under the continues price increase in LNG prices.
Looking ahead, the LNG supply will increase in view of the resumption of some plants in Inner Mongolia, Shandong and Hebei provinces in May, as well as the increase in feed gas supplies after the auction. However, the higher LNG prices may dampen end-users' buying, and the prices are expected to decline in the coming days.
Written by Sunny Fang, fss@oilchem.net
Edited by Aggie Hu, huchenying@mysteel.com