China's LNG market saw weakness in both supply and demand in June, weighed down by the reducing imports despite the production resumption of LNG plants, coupled with falling vehicle LNG demand due to June safety inspection, which reduced transportation activities, learned from OilChem.
Source: OilChem
The total LNG supply in China stood at 836,900 tonnes by the week ended June 6, down 10,300 tonnes or 1.22% from the prior week, data from OilChem showed, primarily due to reducing imported LNG arrivals despite a slight increase in domestic LNG production.
China LNG Supply by Region (tonne)
Region |
Domestic LNG Supply |
WoW Chg |
Imported LNG Supply |
WoW Chg |
China Total |
488,700 |
1.85% |
348,200 |
-5.23% |
Northwest China |
6,800 |
-13.92% |
12,400 |
0.00% |
Northwest China |
182,800 |
3.51% |
-- |
-- |
North China |
196,600 |
0.36% |
857,00 |
-7.95% |
East China |
14,500 |
0.00% |
138,100 |
-3.90% |
South China |
1,200 |
0.00% |
112,000 |
-5.25% |
Central China |
23,400 |
2.63% |
-- |
-- |
Southwest China |
63,400 |
4.11% |
-- |
-- |
Source: OilChem
Separately, domestic LNG production rose 1.85% from the previous week to 488,700 tonnes, taking up 58.39% of China's total LNG supply. The rise was attributed to the production resumption of some LNG plants and the commissioning of new plants, resulting in abundant domestic LNG supply.
At the same time, China received 15 cargo ships or 1.08 million tonnes of LNG by the week ended June 6, down 17.31% compared with 1.31 million tonnes in the prior week, as higher imported LNG prices dampened the buying interest of Chinese importers, according to OilChem.
On the other hand, the total LNG demand in China was 816,300 tonnes during the week ended June 6, down 27,700 tonnes or 3.28% from the previous week, as some end-users overhauled the production and sales during the June safety inspection, reducing the use of LNG heavy-duty truck in logistics.
Source: OilChem
Separately, domestic LNG factories sold a total of 46,800 tonnes of LNG this week, down 8,500 tonnes or 1.78% from last week, mainly due to falling prices and weakening downstream demand, whilst LNG sales volume by truck at coastal terminals dropped 19,200 tonnes or 5.51% to 348,200 tonnes, driven down by lowering domestic LNG prices compared with firm imported LNG prices from higher spot costs.
The average price of domestic LNG stood at Yuan 4,257/t by the week ended June 6, down 0.42% from the previous week, in view of light demand and rising production, while imported LNG ex-terminal prices jumped 1.72% to Yuan 4,506/t, bolstered by higher spot procurement costs and reducing imported cargoes.
Source: OilChem
Written by Sunny Fang, fss@oilchem.net
Edited by Aggie Hu, huchenying@mysteel.com