Asian spot LNG looks set to grind higher over the coming week, according to research published this week.
Analysts tracking the market argue the front-month JKM benchmark, currently around $26.39/MMBtu, should edge up as firm European gas prices (TTF), supply risks around the Strait of Hormuz, and the roll into a higher-priced December contract all push the assessment upward. Selective buying from India, Southeast Asia and Taiwan is seen adding modest support.
The same research cautions the upside is capped: weak Chinese industrial demand, South Korea leaning on coal for power, high Japanese utility inventories, and improving Middle Eastern cargo deliveries all weigh on the market.
One further call from the published view: the gap between Asian LNG and European TTF should narrow toward zero. Asian LNG flipped to a $2.21/MMBtu discount versus TTF as of mid-October, and that discount is expected to shrink as Asian prices firm while TTF holds steady.