LPG: Jun 7-11: Prices jump on firm buying interest and rising crude
CFR Far East
The CFR Far East market surged last week due to strong buying interest and firm crude prices. Rim Asia Index for propane and butane was at $615.75/mt and $610.75/mt respectively as of Jun 10, up $30.50/mt from Jun 3. For second-half July delivery, several traders trying to cover their short-positions moved to buy pure propane. Under this situation, one 23,000mt propane cargo was traded at a premium of $28/mt to the July CP.
FOB Middle East
The July CP was expected at $580-585/mt for propane and $575-580/mt for butane. Regarding a sell tender issued by one Kuwaiti producer, all three cargoes seemed to have been awarded at flat to a premium to the CP. One Qatari producer issued a sell tender for 45,000mt propane cargo for July loading. Meanwhile, there seemed to be some problems with exports from Saudi Arabia and supply of term cargoes for June to July loading was expected to decrease.
Asia Pressurized Market
On FOB South China, sellers maintained their offers for second-half June loading at a premium in the high $40's/mt to the June CP while spot demand did not appear yet. Regarding CFR Vietnam, Vietnamese importers were not seeking spot cargoes since domestic demand remained lackluster in Vietnam due to the COVID-19 outbreak.