CFR Far East

The CFR Far East market was volatile last week. Early last week, the market had plunged due to slack supply/demand for cargoes for delivery to the Far East. Nevertheless, propane prices rebounded in the middle of the week onwards, pulled up by an increase in Mont Belvieu prices along with growing demand in the US. In addition, Japanese importers apparently bought several pure propane cargoes for second-half February delivery in order to supply to city gas companies. Meanwhile, buying interest for butane remained weak. Thus, the spread between propane and butane significantly widened. Rim Asia Index was at $677.50 per metric ton (/mt) for propane and $597.50/mt for butane as of Jan 14, down $0.50/mt and $73.50/mt respectively from Jan 8.　

FOB Middle East

The February CP was expected at around $620/mt for propane and around $580/mt for butane. Weak butane demand caused the spread between propane and butane in the February CP forecast to widen to $40/mt. In the spot market, discussion levels for even-split cargoes for February loading dropped to a discount in the high $30's/mt to the February CP. Moreover, a sell tender issued by a Qatari producer was not apparently awarded. Through the tender, the producer was trying to sell a 45,000mt 50:50 cargo for late February loading.

Asia Pressurized Market

On FOB South China, refrigerated cargo importers from South China already halted offering cargoes for January loading, according to sources. This was because LPG demand was growing in China where temperatures were falling. For delivery to Southeast Asia, term prices for 2021 on a CFR Philippines basis were heard at a premium in the $90's/mt through the $100's/mt to the CP.

Sample Report