Asian spot prices continue to fall
Asian spot LNG prices fell last week to a new one-year low on weak demand and trade wars raising concerns over long-term Asian demand.
The average LNG price for June delivery into northeast Asia was at $11 per MMBtu, the lowest level recorded since mid-May, 2024 and down from $11.80 per MMBtu last week, industry sources estimated.
"LNG price expectations have been transformed in the last two and a half months. US President Trump’s tariff war is set to slow global demand, European gas storage targets are being weakened and imports into the world’s biggest LNG buyer, China, have slumped," said Alex Froley, ICIS senior LNG analyst.
China's demand remained subdued, with LNG imports down 26% in April, 2025 compared to April, 2024, while imports for January/April this year were down 23% from the year before, Froley said.
Toby Copson, chairman at Davenport Energy Partners, said that there was very little fundamental demand in the East for spot cargoes, and utilities aren't stepping in yet to cover cooling demand.
"Sentiment is negative. I don't see a floor yet. If price- sensitive nations start picking up attractive lower prices, we might see rates stabilise. However, trade wars create demand destruction, and there is plenty of supply available," Copson added.
Trade tensions continued to weigh on the outlook for LNG demand this year especially from Asia, with China re-exporting record volumes of LNG in April, said Rabobank energy strategist, Florence Schmit.
In South Korea, buyers sought cargoes to refill low storage levels and there was also stronger demand from Indian buyers, due to low price levels, said Martin Senior, Argus' head of LNG pricing.
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