On December 12, 2024, China, the largest global buyer of liquefied natural gas (LNG), has significantly reduced its purchases as prices have surged. The 30-day moving average of LNG imports from China has fallen 12% below the four-year average for this period, according to ship-tracking data. This decline follows a period where imports were above seasonal norms.
In financial news, the yuan faced downward pressure against the U.S. dollar, reversing initial gains. The People's Bank of China set the midpoint rate at 7.1854 per dollar, which is slightly firmer than previous estimates. The spot yuan opened at 7.2578 per dollar, reflecting a 1.1% decline from the midpoint. Reports indicate that Chinese policymakers are contemplating a weaker yuan to mitigate potential tariff impacts as the political landscape shifts with Donald Trump's anticipated return to the White House.
Despite the depreciation, a publication from the PBOC suggested that the foundation for a stable yuan remains solid, indicating a potential stabilization by year-end. Analysts expect a controlled adjustment rather than a sharp decline, although the yuan has been down for ten consecutive weeks amid tariff concerns and differing monetary policies between China and the U.S.