Trucked LNG prices in southern China have surged to around CNY6,000 (527.66) per ton in recent weeks, the highest for the summer season. Local traders said, trucked LNG prices in southern China usually peaked at CNY3,000-3,500 per ton. This year’s increase was mainly driven by soaring Asian spot LNG prices and robust demand in the region, which includes industrial hubs such as Guangdong and Fujian.
Market participants expect the price to rise further in September, as domestic importers are expected to pass on higher import costs. However, other market players believed the prices would likely hover around the current level this month as demand is expected to cool down on easing temperatures.
The benchmark price for spot LNG delivered to northeast Asia rose to $17 per MMBtu in early August, rising from around $13 per MMBtu in mid-July. Last week the price hit $18.6 per MMBtu, implying that trucked LNG prices in southern China could range at CNY6,300-6,400 per ton.
