JKM derivatives hit record volume in June, H1 2025 trading up 31% YOY

JKM LNG derivatives trading activity surged to record highs in June, with combined traded volumes for JKM monthly futures and balance-month next-day (Balmo-ND) futures reaching an all-time high of 128,655 lots, equating to approximately 24.74 million mt, or around 390 LNG cargoes, according to broker and exchange data.

Of the total, JKM monthly futures accounted for 123,294 lots, while Balmo-ND futures contributed 5,361 lots, surpassing the previous record of 122,145 lots set in February 2025.

The record volumes for June were recorded as North Asia cargo trading activity reaches a summer season peak for July and August deliveries, and as global energy markets were shaken by uncertainty over the Israel-Iran conflict, ramping up risk management activity via financial instruments.

The total traded volume cleared across the Intercontinental Exchange amounted to 128,635 lots of 10,000 MMBtu each, while Tokyo Commodity Exchange recorded 20 lots of 1,000 MMBtu each. The total marked a 45.79% month over month and 65.32% year over year increase.

Notably, this volume was 56.6% higher than Northeast Asia's total LNG imports of 15.80 million mt for June, based on data from Platts, part of S&P Global Commodity Insights.

Total end-month open interest across ICE and the Chicago Mercantile Exchange stood at 167,892 lots, down 1.74% from the record high of 170,873 lots in May. ICE accounted for 96.68% of the open interest -- 159,894 lots for JKM monthly futures and 2,418 lots for Balmo-ND futures -- while CME made up the remaining 3.32%, with 5,580 lots for JKM monthly futures.

Activity in the JKM Average Price Options contract also strengthened sharply, with volumes more than tripling from the previous month to 2,200 lots. End-month open interest rose to 12,030 lots, up 5.94% from May.

The Platts JKM averaged $13.118/MMBtu in June, up $1.07/MMBtu from $12.048/MMBtu in May.

Geopolitical tensions took center stage as the conflict between Iran and Israel rattled global LNG markets. While physical flows from the Middle East remained uninterrupted, heightened risk aversion pushed prices higher amid deteriorating sentiment.

The greater fluctuation observed in the spot LNG prices curbed demand from Northeast Asian end-users, according to market sources.

Market participants also monitored weather patterns for potential cooling demand. However, despite rising temperatures, Northeast Asian buyers largely stayed on the sidelines, as healthy inventories continued to suppress spot activity.

H1 2025 trading sees strong growth

Across the first half of 2025, traded volumes on financial exchanges totalled 648,938 lots, up 30.94% compared to the same period in 2024. This figure represents 67.15% of the total volumes recorded for the whole of 2024.

End-month open interest over H1 stood at 953,322 lots, a 51.96% increase year over year, amounting to 70% of 2024's total. With the current momentum, both trading activity and open interest appear on track to exceed the previous year's levels.

On the pricing front, Platts JKM prices in H1 2025 observed more fluctuations compared to the same period in 2024, driven by pronounced swings in market sentiment and broader macroeconomic factors, including tariff announcements by the US administration and heightened Middle East tensions.

Prices ranged $10.614-$17.123/MMBtu in H1 2025, wider than the $7.981-$13.355/MMBtu range seen in H1 2024.