LPG: May 17-21: Supply/demand for butane tightens in Asia
CFR Far East
Rim Asia Index for propane and butane was at $540.50/mt as of May 20, down $3.75/mt and $6.25/mt respectively from May 14. Propane prices dropped due to weak crude prices late last week. Several pure propane cargoes for second-half June to first-half July delivery were traded in the spot market one after another although supply for second-half June delivery was not ample. Butane prices rose owing to views that influx of butane ex-US might decrease. One 44,000mt 50:50 cargo for second-half June delivery to Korea was apparently traded at a premium of about $10/mt to June CFR Far East quotations.
FOB Middle East
The June CP was expected at $500-505/mt for propane and $490-495/mt for butane. Spot demand for even-split cargoes became robust. Discussion levels for even-split cargoes for June loading were heard at a discount of $5/mt through flat to the June CP. Through a sell tender, one Qatari producer had apparently sold a 45,000mt propane cargo for Jun 19-20 loading at a discount of $10-15/mt to the June CP. Apart from that, one Kuwaiti producer seemed to have sold a 44,000mt 75:25 cargo for Jun 21-22 loading via a sell tender as well.
Asia Pressurized Market
On FOB South China, one refrigerated cargo importers could sell cargoes for June loading at a premium in the high $30's/mt to the June CP. Meanwhile, buyers were not seen in the market. Regarding CFR Vietnam, one importer from Haiphong was not interested in spot purchase since domestic demand was very weak in Vietnam due to the COVID-19 outbreak.