(Argus) Japan’s coal imports fell to a five-year low in May but held up well compared with LNG inflows. Competition from LNG could grow in the months ahead, but a spell of hot weather and reduced nuclear availability should support coal consumption.
Despite an expected increase in LNG imports, hot weather and reduced nuclear availability should support coal consumption
Looking ahead to the second half of the year, competition from LNG could intensify as low oil prices filter through to LNG import prices, as part of the oil-indexed lag built into term contracts. This contract structure has also likely encouraged some utilities to defer some contracted LNG volumes until later in the year, when prices should be lower.
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