CFR Far East

In the CFR Far East market last week, prices went down due to increasing supply. The Rim Asia Index was at $604.00/mt for propane and $644.00/mt for butane as of Feb 29, down $8.00/mt from Feb 22. In the CFR Far East market, there were sellers having 46,000mt propane cargoes. According to sources, four 46,000mt propane cargoes for second-half March delivery were available and some sellers might shift to offer them in the market for first-half April delivery. On the other hand, spot buying for propane dehydrogenation (PDH) plants in China and demand for petrochemical use was active. One importer from Taiwan bought a 44,000mt propane cargo for Apr 1-10 delivery at a discount of $70/mt to April naphtha quotations.

FOB Middle East

Saudi Aramco set the March CP at $630/mt for propane and $640/mt for butane, unchanged from the previous month. This level was said to be higher than market forecasts. Some sources reckoned that it might be because crude prices had risen recently compared to a month earlier. For April loading, there were views that buyers might not be keen to purchase cargoes from the Middle East since the March CP was set higher than expectations and the paper market for the CP was moving up as well because of this.

Asia Pressurized Market

On FOB South China basis, some sellers seemed to have room to sell cargoes for March loading. However, talks were slow to progress as few buyers were seen. In Southeast Asia, a Malaysian petrochemical maker conducted a sell tender for a total of five cargoes loading Feb 28 to Mar 11.