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China鈥檚 LNG market moved from a mid-June build into a pronounced early-July correction as increased cargo arrivals and collapsing LNG feedstock costs removed cost support for domestic sellers. Early June saw tightening from maintenance and logistics bottlenecks that, together with seasonal cooling needs, lifted demand mid-month; by late June, comfortable regional LNG supply and softer spot buying began to ease that pressure. In early July, simultaneous price cuts across domestic liquefaction plants and a surge of lower-priced Middle East cargoes reversed the recent strength, leaving buyers with greater spot availability and sellers under margin pressure.
Power generation and city gas distribution were the primary demand pillars through June, supporting utilities and local distributors as they built inventories for summer cooling and peak electricity usage. In contrast, the transport and heating sectors were a drag as policy-driven electrification moderated incremental gas demand, while industrial consumption...
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