Chinese LNG imports have climbed over the past month amid dropping prices and efforts to refill stock levels, reversing a trend of several months of declining imports, Bloomberg reported on August 15.

China’s 30-day moving average for LNG imports has risen above the five-year average for August, Bloomberg reported citing ship-tracking data.

It marks a significant change from earlier this summer. Imports of the super-chilled fuel by the world’s biggest buyer of LNG plummeted in June by 12% year-on-year.

July also saw another dip both from June’s level and year-on-year from July 2024. The drop in July, represented the ninth consecutive month imports have fallen on a year-on-year basis.

A number of factors have contributed to China’s declining imports of the super-cooled gas. The country experienced a mild winter and high spot market prices also discouraged shoring up inventory levels. Gas companies also chose to ramp-up pipeline imports from neighbouring countries.

Additionally, the US trade war with China also resulted in the halting of US LNG supplies being shipped to Beijing, with China instead choosing to re-export record levels of LNG to other Asian buyers.

However, Asian LNG spot market prices have fallen in recent weeks, while European prices have risen.

In fact, Asian LNG spot market prices are at their lowest level since April, trading in the low-to-mid $11 per million British thermal units (MMBtu) range.

The favourable prices have led Beijing Gas to order two cargoes for September delivery and Zhejiang Energy to purchase a cargo as well, traders with knowledge of the subject told Bloomberg.

Nevertheless, the August uptick is not an indication that imports will continue climbing again. Traders told Bloomberg that the rise in imports is largely due to Chinese companies taking advantage of the price dip to refill inventories.

Research firms predict that Chinese LNG imports will fall between 6% to 11% from 2024’s total of 76.65mn tonnes.