CFR Far East

In the CFR Far East market last week, prices weakened in the wake of ample supply. The Rim Asia Index was at $607.50/mt for propane and $623.50/mt for butane as of Jan 11, down $31.50/mt from Dec 26. As voyages via the Panama Canal were smooth, US cargoes flowing into the Far East using this route were observed. Thus, supply having US-origin cargoes was increasing and the spot market for February delivery decreased. On the other hand, due to falling spot prices, buying interest from several players operating propane dehydrogenation (PDH) plant in China was improving. Several PDH plant operators procured spot cargoes for February delivery via buy tenders.

FOB Middle East

The February CP was expected to be at around $580/mt for propane and $590/mt for butane. Qatar Petroleum for the Sale of Petroleum Products Company Limited (QPSPP) was conducting a sell tender closing Jan 16 with validity until Jan 17. Offered in the tender was a 45,000mt 50:50 cargo loading Feb 25-28. Further, one importer in South Korea could offer a 44,000mt 50:50 cargo for February loading and one US Major also had a similar cargo for March loading. Although sellers were seen, demand from India or Southeast Asia was lackluster.

Asia Pressurized Market

On an FOB South China basis, some South China importers were interested to sell spot cargoes for January loading but few buyers were seen in the market. As the February CP was expected to be below the January CP, buyers appeared not to be keen on spot purchase. In Southeast Asia, one refinery in Thailand issued a sell tender for first-half February loading while one refinery in Malaysia was moving to sell via a tender a cargo for Jan 15-20 loading. Further, one Malaysian petrochemical maker apparently sold a cargo for mid-January loading.