The Platts LNG Japan Korea Marker for July, the newly assessed front month, began trading at $13.625/MMBtu on Friday.
The marker for June fell 32.5 cents from last Friday to close at $13.625/MMBtu on Thursday amid ample supply and weak demand.
Throughout the week, trade was relatively thin as most negotiations for June were concluded and bids dried up, with only a few remaining buyers were seen in the market.
Bids for June were seen in the low $13s/MMBtu or at $13/MMBtu while offers remained below $14/MMBtu. Earlier in the week, the market came under pressure from a deal to China heard done last week at under $14/MMBtu, sources said, although the trade was not confirmed.
Thailand PTT's recent buy tender was also done at less than $14/MMBtu, putting further downward pressure on the market, sources said, although this deal was also not confirmed either.
Cargoes were available for June delivery from projects in the Asia- Pacific region and reloads out of Europe with some of the unsold cargoes are expected to roll into July.
Among those projects seen having extra volumes included Indonesia's Bontang, Malaysia's Bintulu and Australia's North West Shelf.
Warm weather in the Asia Pacific region have also helped end-users keep high stock and allowed them to bide time for better opportunities. Japan's 10 major utilities LNG consumption fell 3.3% year on year to 4.2 million mt in April, the Federation of Electric Power Companies of Japan said Friday. In South Korea, state-owned Korea Gas said Tuesday its LNG sales in April dropped 16.5% from a year earlier to 2.68 million mt due to higher temperatures.
Meanwhile, sources said Kogas was seeking time swaps for up to 30 cargoes over the June to August period, although this could not be confirmed. The oversupply situation in South Korea could have a lingering effect on the market for a while, a North Asia source said.
"It could last until November. This could be a factor to add downward pressure on the market," the source said. "I don't see any factors that would push the market up."
The bearish outlook was also reflected in bids and offers for July cargoes.
Offers for July cargoes were seen about the same level as June with bids at low to mid $13s/MMBtu and offers below or at $14/MMBtu.
"There is a big supply overhang in Asia, and it is not looking like it is going to be solved in the next two months," an Asia source said.
