Japanese spot LNG cargo prices are continuing to show signs of 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 the March-May period.
But they started to pick up in June and the contract-based price even increased year-on-year in July, according to data released by the Ministry of Economy, Trade and Industry.
The average contract price for spot LNG cargoes shipped to Japan in July stood at $5.20/mmBtu.
This compares to $3.80/mmBtu in June and $4.70/mmBtu recorded in July 2019.
METI’s data shows the arrival-based spot price stood at $4.10/mmBtu rising from last month’s $3.80/mmBtu but down from $4.70/mmBtu in July last year.
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.