Asian Spot Prices Fall Below $5 per MMBtu; European US Prices also Drop

30 May 2019

Asian spot prices have fallen below $5/ MMBtu and are trading in the mid-$4s for cargoes delivered in July, although that could change as warmer-than-normal temperatures could prompt several Japanese power companies to seek spot cargoes in July.

In Europe, Britain’s NBP has fallen to $3.55 for July and the Dutch TTF to around $3.70. At midday May 31, US HH futures prices had fallen below $2.50 for July, down from the June contract settlement May 29 at $2.633. Sabine Pass FOB cargoes for June are priced at $3.03 without fixed costs and range from $5.28 to $6.03 with fixed costs. HH prices for the rest of the year have also fallen.

In Japan, Jeragm bought a cargo at $4.40 for delivery July 5-7 from BP in the Platts market on close (MOC) window on May 24. Tohoku Electric, Chugoku Electric and Kansai Electric may also each seek to buy a spot cargo for July delivery. A coal-fired power plant is understood to be offline and could prompt Kansai Electric to return to the spot market in July.

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