China’s LNG demand has been weak recently, although imports saw a slight rise in August

• China’s monthly LNG imports rose recently but remained lower than the previous year’s levels for the 11th consecutive month.
• High spot prices limited demand, with buyers relying on long-term contracts rather than spot purchases.
• Prices stayed above a level where LNG is competitive with domestic gas or pipeline supplies.
• Other price-sensitive Asian markets, like India, also reduced imports.
• Strong demand from Europe and developed Asian economies helped keep global prices elevated.
• A sustained decline in spot prices is needed for demand recovery in cost-sensitive markets.

China's demand for liquefied natural gas has remained subdued for nearly a year, with monthly import volumes consistently trailing behind the levels seen during the same months in the previous year. This prolonged softness in year-on-year comparisons reflects ongoing price sensitivity, as spot LNG rates have stayed persistently above the competitive threshold of USD 10 per million British thermal units. At these elevated price levels, Chinese buyers have largely avoided the spot market, relying instead on long-term contracts to meet baseline needs while favoring more affordable domestic natural gas and pipeline alternatives when possible. This pattern of restrained purchasing has been particularly evident among price-sensitive importers across Asia, including India, where August imports were poised to extend a multi-month declining trend.

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More recently, however, China’s monthly import volumes have shown a noticeable uptick from the low point observed in February. August shipments reached their highest level since January, indicating some near-term strengthening in procurement activity. This increase is largely attributed to the delivery of previously contracted supply rather than a sign of renewed spot market engagement. Although this rise in monthly imports may suggest a tentative recovery, it has not yet been sufficient to reverse the longer-term trend of negative year-on-year growth. The market continues to watch for a sustained decline in spot prices, which would be necessary to stimulate broader demand recovery among cost-conscious buyers in China and similar markets.