SINGAPORE, Apr 13 (Reuters): Asian spot liquefied natural gas (LNG) prices slid to an over eight-month low last week, weighed by weak demand, high stocks and concerns of a global recession triggered by US President Trump's implementation of worldwide tariffs.
The average LNG price for May delivery into north-east Asia LNG-AS was at $12.50 per million British thermal units (mmBtu), the lowest level since late July, industry sources estimated.
The June delivery price was estimated at $11.30/mmBtu.
"Asian LNG prices are under pressure amid weak seasonal demand, high inventories and recession concerns tied to elevated U.S.-China trade tensions," said Kpler analyst Go Katayama, referring to stockpiles in Japan and Korea.
While the 90-day tariff pause by the US has sparked optimism, it is limited, and the continuation of tariffs on Chinese goods keeps market sentiment cautious, he added.
"Restocking in Northeast Asia remains subdued and is unlikely to pick up unless prices drop below $12/mmBtu or weather forecasts shift hotter."
Trump's sweeping tariffs on dozens of countries roiled global markets this week, spurring concerns of a recession and an escalating trade war between China and the US.
LNG importers in China, the world's top buyer of the fuel, are re-selling US-sourced cargoes as the tit-for-tat tariffs drive up import costs.
China's halt in US LNG imports is likely to continue, while muted gas demand growth will curb incremental LNG demand, said Rystad analyst Wei Xiong.
In Europe, S&P Global Commodity Insights assessed its daily North West Europe LNG Marker (NWM) price benchmark for cargoes delivered in May on an ex-ship (DES) basis at $10.127/mmBtu on April 10, a $0.805/mmBtu discount to the May gas price at the Dutch TTF hub.
Argus assessed the price for May delivery at $10.195/mmBtu, while Spark Commodities assessed it at $10.184/mmBtu.
