Podcast - China LNG market weekly takeaway: prices extend their rally, high prices are starting to cap demand

Domestic prices rose about seven percent, lifting Inner Mongolia plants from losses to a profit margin of roughly 460 yuan per tonne. Imports moved the other way, with the spot import margin falling to around negative 4,500 yuan per tonne. With buyers pushing back, only a slight rise is expected in the upcoming week.

Key takeaways:

• Producers regained pricing power. Low plant inventories and steady shipments let ex-plant prices climb to around 7,500 yuan per tonne, up more than seven percent and profit margins turned positive again.
• Imports are under pressure and buyers are pushing back. Dutch TTF rose around 14 percent, making landed spot cargoes far more expensive than domestic terminal prices. At the same time, LNG lost its cost edge over pipeline gas for industrial users, and open arbitrage windows fell by two to six.
• Prices are forecast to edge up in the upcoming week, with ex-plant levels moving toward 7,700 yuan per tonne. Weaker vehicle demand and higher feedstock gas auction prices could narrow plant profit margins.

For the full analysis and data behind today's discussion, contact us at inquiries@mysteel.com for a trial read of the latest China LNG Market Weekly Report by Mysteel OilChem.

For more market intelligence on China's LNG market, including supply-demand dynamics, pricing trends, and industry developments, visit mysteel.net.

Listen to the full episode on Spotify now: https://open.spotify.com/episode/6zHacrjFi9sfNl6rHUzlTk?si=OJ6htJyHR3i8lX6cXSTJxA