Platts September LNG Japan Korea Marker ended the week at $13.05/MMBtu, making a small drop of 5 cents from Monday's $13.10/MMBtu, as time ran out for parties to conclude trades in the period.
"September trading is too prompt as the receiving capacity for the month is almost full in Japan," a Tokyo-based trader said, adding: "No transactions are likely in September, and buyers' priority is for October cargoes due to winter preparations."
Buying interest was rekindled in North Asia early this week as the region's weather turned warmer after a cooler-than-usual start to summer.
Typhoons Saola and Damrey passed North Asia last week, bringing rain and cooling temperatures in Japan, South Korea, Taiwan and China. All four countries were experiencing summer temperatures ranging between 32 and 35 degrees Celsius before the typhoons, and power utilities were drawing down on their existing inventories to satisfy additional electricity demand.
A few North Asian utilities expressed interest in September spot shipments but kept their cards close to their chest and waited for a possible supply overhang to exert downward pressure on prices before initiating negotiations.
While the weather has recently turned warmer in Japan, power saving measures and a cooler-than-usual start to summer combined to reduce spot demand from utilities, a Tokyo-based market source said, adding: "Japanese utilities are waiting for prices to slide after they prepared for summer by buying cargoes in advance."
North Asia's summer typically begins in June and lasts until August or mid-September. LNG demand is cyclical and summer is one of the two peak buying periods in north Asia due to increased air conditioning use.
The weather for Japan, the largest buyer of LNG in North Asia, from August 11 to September 10 is forecast to be warmer than average for 10 of the country's 12 regions, according to data released by the Japan Meteorological Agency Friday.
There could be more LNG supply available when Australia's North West Shelf LNG project opens a sell tender this weekend for a few cargoes, a Singapore-based trader said but was unable to provide more details. North West Shelf LNG officials were not available for comment.
Sell tenders from the UAE's Adgas for one mid-August loading cargo and from Nigeria LNG for an early September loading shipment could have been awarded this week, market sources said, but no further details were available. Nigeria LNG and Adgas officials were not available for comment.
Meanwhile, even as buying demand for September petered out in North Asia, there was demand remaining in India for up to two September cargoes, while Thailand's PTT invited a few suppliers to participate in its buy tender for up to three September and October shipments.
India's GAIL and and GSPC could be looking for one September cargo each, sources variously said.
Platts September DES west India settled unchanged at $10.75/MMBtu Friday after starting the week at $10.75/MMBtu.
Platts Asia Pacific Day Rate ended the week lower at $140,000/d, down from $143,000/d Monday, with the softer value reflecting thin trades in the current spot LNG physical market.
Charterers' highest bids were pegged at $130,000/d while vessel owners were holding out with offers above $145,000/d, the same Tokyo-based market source said, adding: "The Golar Maria will be available from next week for a 12-month charter."
Sources variously said there were up to nine ships available for charter until the end of September.
