JKM derivatives end-July open interest and BalMo trade volumes hit record highs

JKM LNG futures end-month open interest reached an all-time high in July at 180,961 lots, surpassing the previous record of 170,873 lots set in May 2025 -- a 6% increase, according to exchange data.

The Intercontinental Exchange accounted for 96.92% of the open interest -- 168,606 lots for JKM monthly futures, and 6,775 lots for JKM Balance-month Next-day (BalMo-ND) futures -- while the Chicago Mercantile Exchange made up the remaining 5,580 lots for JKM monthly futures.

Meanwhile, all traded volumes for JKM derivatives were recorded on ICE, reaching 104,267 lots in July, dropping 18.96% month over month but rising 52.13% year over year. Of this, JKM monthly futures contributed 95,339 lots while JKM balance-month next-day accounted for 6,775 lots.

The total traded volume corresponds to roughly 20.05 million mt of LNG, equivalent to 316 cargoes.

Notably, traded volumes and end-month open interest for the JKM BalMo-ND futures hit record highs, surpassing the previous records set in May 2025 at 7,000 lots and in November 2023 at 6,075 lots.

Activity in the JKM Average Price Options contract declined, with traded volumes and end-month open interest falling by 21.8% and 11.64%, respectively, to 1,720 lots and 10,630 lots, respectively.

The focus for physical trading shifted from August to September delivery windows, with the Platts JKM -- the benchmark price for LNG cargoes delivered to Northeast Asia -- hovering in the mid-$11s/MMBtu to high-$12s/MMBtu range throughout July.

The first half of the month saw stronger prices, reaching a peak of $12.997/MMBtu on July 14, as demand for August-delivery shipments were boosted by summer requirements and trading houses were reportedly covering shorts, according to market sources.

Weather-driven demand remained a key driver, with heatwaves across Japan and South Korea boosting power sector consumption. Meteorological agencies in both countries issued heat wave alerts, pushing several Northeast Asian utilities -- including Tohoku Electric, Kyushu Electric, CPC and KOSPO -- to seek spot cargoes via tenders for late August and September delivery.

The second half of the month saw an overall decline in prices amid muted demand for September delivery shipments, reaching a low of $11.561/MMBtu on July 25, before picking up slightly amid geopolitical uncertainties.

In the bilateral market, Guangzhou Gas made headlines with its July 25 purchase of a late-August delivery cargo at the mid-$11s/MMBtu level aimed at meeting domestic demand -- the first spot procurement by a second-tier Chinese company in several months. Meanwhile, the Chinese National Oil Companies were active on both the buy and sell sides to optimize their positions.

Some buyers stayed cautious amid rising price risks. Sentiment was bolstered in end-July by geopolitical concerns, particularly after US President Donald Trump imposed a tighter deadline for Russia to reach a ceasefire agreement with Ukraine. The threat of secondary sanctions loomed over countries continuing trade with Moscow, adding a layer of uncertainty to the market.

Platts, part of S&P Global Energy, assessed the September JKM benchmark price for spot LNG cargoes delivered into Northeast Asia at $11.867/MMBtu on Aug. 4.