CFR Far East

　 In the CFR Far East market last week, prices gained as buying interest recovered. The Rim Asia Index was at $619.50/mt for propane and $635.50/mt for butane as of Jan 25, up $11.00/mt from Jan 19. Traders were looking for cargoes for first-half March delivery and demand for petrochemical use was heightening as the spread between naphtha and LPG prices widened. One South Korean petrochemical company Hanwha Total Energies and one importer from South Korea E1 were trying to buy cargoes containing butane for first-half March delivery in the spot market. On the other hand, pure propane cargoes for second-half February delivery were seen and there were many potential sellers for first-half March delivery. Sources pointed out that supply/demand was not tight.

FOB Middle East

　 The February CP was expected to be at around $600/mt for propane and $610/mt for butane. Due to a sharp fall in freight costs, some buyers were keen on procuring Middle Eastern cargoes on an FOB basis. Bids for 44,000mt 50:50 cargoes for March loading were heard in the low $10's/mt to the March CP while sellers showed counter offers at a discount of $7/mt to the March CP. One European trader bought a similar cargo at a discount in the low $10's/mt to the March CP.

Asia Pressurized Market

　 On an FOB South China basis, some sellers had room for spot sale for February loading. Buyers also emerged. A deal was reportedly done at a premium of about $60/mt to the February CP. In Southeast Asia, a Malaysian petrochemical maker conducted a sell tender for a cargo loading February. The tender was apparently awarded to a Malaysian importer.