- LNG trading in Asia’s MOC slowed for January as demand stayed weak.
- Northeast Asian LNG price benchmark (JKM) fell to its lowest winter level since 2020.
- Interbasin spreads narrowed, and arbitrage opportunities remain limited.
LNG activity in the Market on Close (MOC) process for Asian cargoes showed slower momentum as the market moved into the January pricing window. About 975,000 mt of LNG cargoes were reported traded in the physical MOC period, with total bids, offers and trades down from the previous cycle, suggesting fewer participants were active amid weaker fundamentals.
JKM Falls to Multi-Year Winter Low
The Japan-Korea Marker (JKM) price, a key benchmark for Northeast Asian LNG, slipped to roughly $9.45/MMBtu, marking its weakest winter assessment in several years. Traders pointed to ample supply from Atlantic markets and muted demand in Northeast Asia as key reasons behind the soft pricing.
Weak Fundamentals Keep Buyers Cautious
A notable portion of LNG bids and offers were priced against the JKM index, reflecting a cautious approach from buyers and sellers. Limited appetite for January deliveries, particularly from price-sensitive buyers, meant fewer trades were concluded, and many players stayed on the sidelines
Interbasin Spread Narrows
The spread between Asian and European LNG pricing benchmarks also tightened, reducing profitable arbitrage opportunities. With weaker Asian demand and strong supply flows, the incentive to move cargoes between regions has diminished compared with more active markets earlier in the year.
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Source: SP Global
