The average LNG spot price paid by Japanese buyers for contracted volumes during July was $11.80/MMBtu, down 14.5% from $13.80/MMBtu in June, Japan's Ministry of Economy, Trade and Industry said this week.
In comparison, the Platts Japan Korea Marker averaged $10.813/MMBtu over the calendar month of July. This reflects spot deals concluded in July for delivery in August and September to Japan and South Korea.
The ministry said the average price for LNG cargoes delivered to Japan in July was $13.80/MMBtu, down 8% from $15/MMBtu in June.
The Platts JKM for July-delivered cargoes averaged $12.951/MMBtu by comparison. Platts assessments between May 16 and June 13 reflect spot cargoes for delivery in July. The July trading month began with JKM at $13.625/MMBtu on May 16 before declining steadily throughout the assessment period to close at $12.025/MMBtu on June 13.
The ministry noted that only spot cargoes, or single cargoes, are taken into account in its assessment, excluding short-, medium- and long-term contract cargoes, as well as those linked to a particular price index.
Delivery conditions are all converted into equivalent DES basis before taking an average of the prices.
