(Bloomberg) — China, the world’s biggest importer of liquefied , is trying to sell some spare supply due to fears that demand-sapping virus lockdowns could spread from Shanghai to other parts of the country.

According to traders who have knowledge, major buyers Cnooc Ltd. are offering five or more shipments on the spot market for the summer, amid a worsening domestic outlook. According to traders, these companies may consider offloading more cargoes in the event of Covid-19 China restrictions increasing, they said. They requested anonymity to share their private information.

The continuing spread of the coronavirus in Asia’s largest economy and Beijing’s strict Covid Zero approach to try and contain it are spurring concern growth will take a bigger hit than previously anticipated. Markets were shaken Monday by news that iron ore, an important economic indicator, was down after mass testing took place in Beijing. 

China doesn’t produce any LNG domestically, so the companies are trying to resell the cargoes to new buyers in Asia. According to traders, the firms could offload super-chilled fuel shipments as they have high inventories. International prices will attract them, which is well beyond domestic rates.

North Asia LNG spot prices have fallen almost 70% since surging to a record in early March after Russia’s invasion of Ukraine tightened global supply, but they are still significantly higher than normal for this time of year. The possibility of Chinese demand continuing to decline could further push spot prices down, providing relief to European and Asian gas distributors and utilities.

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