China’s LNG market shifted from a mid-June build to an early-July correction as higher cargo arrivals and lower LNG feedstock costs removed cost support for domestic sellers. Early tightening from maintenance and logistics bottlenecks, plus seasonal cooling demand, supported activity mid-month; by late June steady regional supply and softer spot buying eased the pressure. In early July, domestic price cuts and lower-priced Middle East cargoes reversed the prior strength, expanding spot availability and pressuring margins for sellers. Ex-Shanghai assessments stayed steady before weakening as spot indicators fell. Domestic LNG feedstock and pipeline gas costs declined, compressing liquefaction margins and triggering broad producer cuts. With improved Middle East supply and higher inventories, near-term prospects point to softer prices, though seasonal LNG demand may provide support.
