CFR Far East

In the CFR Far East market last week, prices went down due to increasing supply. The Rim Asia Index was at $619.50/mt for propane and $642.50/mt for butane as of Mar 21, down $5.50/mt from Mar 15. Sellers having second-half April delivery cargoes emerged and this sent the market lower. Among traders, a 23,000mt propane cargo was traded at a premium of $1/mt to March CFR Far East quotations (equivalent to $609/mt or a discount of $9/mt to the April CP) last Friday. Further, one European petrochemical company was reported to have sold a similar cargo at a premium of $7-8/mt to April CFR Far East quotations. Sellers with US cargoes were expected to emerge in the spot market going forward as the arriving timing of their cargoes became clear while the number of buyers was limited. As the spot market for May delivery was lower than that for second-half April delivery, buying interest shifted to cargoes for May delivery.

FOB Middle East

The April CP was expected at $615-620/mt for propane and at $620-625/mt for butane. Saudi Aramco was expected to release the April CP on Mar 31. Prior to that, sources reckoned that Aramco would check its term customers' recommendations for the April CP on Mar 22 and Mar 28. In the spot market, supply for April loading was ample. Players taking term cargoes from the Middle East were keen on reselling their cargoes. These sellers were reportedly lowering their offers for 44,000mt 50:50 cargoes to a discount in the mid-high $20's/mt to the April CP.

Asia Pressurized Market

On an FOB South China basis, there were rumors of a deal for April loading done at a premium in the $60's/mt to the April CP but this could not be confirmed. Overall, buying interest was not seen to be strong. In Southeast Asia, a Malaysian petrochemical maker issued a sell tender for two cargoes loading in late March. In Vietnam, domestic sales to industrial users were robust but importers were not looking for spot cargoes for April delivery at the moment.