CFR Far East

In the CFR Far East market last week, prices climbed due to rising demand. The Rim Asia Index was at $613.00/mt for propane and $653.00/mt for butane as of Feb 21, down $12.50/mt from Feb 16. After the Lunar New Year holidays, spot demand from Chinese players and traders emerged, but sources perceived that there were a number of potential sellers and this weighed on the market. One supplier from Canada was reported to have sold a 46,000mt propane cargo for second-half March delivery to one Japanese importer. For butane, one European trader seemed to have sold a 11,000mt butane cargo for second-half March delivery. Information was heard that another Japanese importer procured the cargo and the importer would supply it to steel end-user in Japan.

FOB Middle East

The March CP forecast was expected at around $620/mt for propane and at around $630/mt for butane. Owing to rising Middle East-Far East freight rates, buyers were apparently concerned about high freight costs and exercised caution on purchasing spot cargoes on an FOB basis. Sources perceived that buyers with room for spot procurement of 44,000mt 50:50 cargoes for March loading would only consider purchasing at a discount to the March CP. With gas plant maintenance in Kuwait scheduled to finish in second-half March, LPG supply from the Middle East was expected to recover after that.

Asia Pressurized Market

On FOB South China basis, some seller had room for spot sale. Selling ideas for March loading were heard at a premium in the $60's/mt to $70's/mt to the March CP. On the other hand, buying interest was thin. In Southeast Asia, one seller was apparently interested to sell a cargo for February loading. Apart from this, selling ideas for March loading were heard at a premium of $80/mt to the March CP.