Japanese spot LNG cargo prices are showing signs of slight recovery following a record drop in May.
The effects of the Covid-19 coronavirus pandemic have weighed down on Japan’s spot LNG prices pushing them to record lows in previous months.
The average contract price for spot LNG cargoes shipped to Japan in June stood at $3.80/mmBtu, according to data released by the Ministry of Economy, Trade and Industry.
This is a rise compared to a record low in May when the contracted price reached $2.20 per mmBtu.
But its still represents a decline when compared to the same month a year ago when the contracted price was $5.5/mmBtu.
METI’s data shows the arrival-based spot price was also at $3.80/mmBtu rising from last month’s $2.60/mmBtu but substantially down from $7.50/mmBtu recorded in June 2019.
The ministry surveys only spot LNG cargoes purchased by Japanese utilities and other importers.
It excludes cargo deals linked to a particular price index such as the US Henry Hub.