CFR Far East

In the CFR Far East market last week, prices dropped as freight rates were falling and the number of sellers increased. The Rim Asia Index was at $604.50/mt for propane and $620.50/mt for butane as of Jan 18, down $25.00/mt from Jan 12. The freight market sharply moved down along with weak chartering demand. In addition, sellers having cargoes for second-half February delivery appeared and the CFR Far East market went down. For propane, one Canadian supplier sold a 46,000mt propane cargo for second-half February delivery to one Japanese importer at a discount of $15/mt to February CFR Far East quotations. On the other hand, as the spread between LPG and naphtha prices expanded, buying interest for LPG cargoes for petrochemical use was expected to heighten. Under such circumstances, E1 issued a buy tender for butane cargoes for second-half February and first-half March delivery. The company wanted to receive offers based naphtha quotations.

FOB Middle East

The February CP was expected to be at around $590/mt for propane and $600/mt for butane. Due to falling freight costs. Some buyers were trying to buy spot cargoes on an FOB Middle East basis. One Japanese trader was reported to have procured a 44,000mt 50:50 cargo at a discount of $11/mt to the March CP from one European Major. Further, a similar cargo for March loading was traded at a discount of $15/mt to the March CP. The seller was said to be one European trader and the buyer was likely to be one North Sea gas producer.

Asia Pressurized Market

On an FOB South China basis, some South China importers could apparently sell spot cargoes for February loading at a premium of $60/mt to the February CP. As for demand, not many buyers were observed. Only some Southeast Asian importers seemed to have room to buy February loading. In Southeast Asia as well, no sell tenders were heard. On the other hand, buying interest appeared to be lackluster.