CFR Far East

The CFR Far East market had fallen early last week due to weak crude prices and retreating buying interest. Nevertheless, views emerged that supply to the Far East might tighten due to foggy weather in the USGC. This was seen as a bullish factor and the market considerably rebounded last Thursday. Meanwhile, supply/demand for cargoes containing butane seemed to be slack. Several players such as one European trader and an importer from East China held mixed propane/butane cargoes for second-half March to first-half April delivery but active sellers were not observed. Rim Asia Index was at $607.25 per metric ton (/mt) for propane and $582.25/mt for butane as of Feb 25, down $5.00/mt and $10.00/mt respectively from Feb 19.

FOB Middle East

FOS spot prices rose to a discount of $35-40/mt to the March CP due to a decrease in spot freight rates. One Qatari producer apparently sold a 44,000mt 75:25 cargo for late March loading to one European Major at a level based on the netback subtracting freight costs from March CFR Far East quotations last Tuesday. Meanwhile, a sell tender issued by BASF seemed not to have been awarded. Through the tender that had closed on Monday, offered in the tender was a 44,000mt 50:50 cargo per month for April to June loading from Mina Al Ahmadi.

Asia Pressurized Market

On FOB South China, one Chinese importer was planning to sell cargoes for March loading but refrained from offering in the absence of active buyers. Regarding CFR Vietnam, spot demand for March delivery to Vietnam was unlikely to emerge due to weak domestic sales in Vietnam.

Sample Report