CFR Far East

In the CFR Far East market last week, prices went down due to increasing supply. The Rim Asia Index was at $611.50/mt for propane and $634.50/mt for butane as of Apr 18, down $2.50/mt from Apr 12. Sellers having cargoes for second-half May delivery, such as one Middle Eastern trader and one South Korean importer were seen until early last week and supply seemed not to be tight. However, Chinese players conducted a buy tender and traders trying to cover their short positions rushed into spot purchase. As a result, available cargoes were gradually decreasing. Under this situation, sources reckoned that discussion levels for 23,000mt propane cargoes were at a premium of about $10/mt to May CFR Far East quotations (equivalent to $611/mt or a premium of $28/mt to the May CP as of Apr 18).

FOB Middle East

The May CP was forecast at about $580/mt for propane and about $585/mt for butane. There were many sellers for May loading. Several Middle East producers moved on spot sale. Discussion levels for 44,000mt 50:50 cargoes for May loading were seen to be at a discount of around $30/mt to the May CP. For pure propane cargoes, buying interest was thin. Some sources reckoned that relative to the May CP, the discount level for pure propane cargoes was about $10/mt steeper than that for even-split cargoes.

Asia Pressurized Market

On an FOB South China basis, some sellers had room for spot sale for May loading while buyers also considered purchasing spot cargoes. Discussion levels for May loading were heard at a premium of about $50/mt to the May CP. A deal was also reported. A Chinese importer apparently sold a spot cargo to an Asian trader. In Southeast Asia, a Malaysian supplier issued a sell tender for two cargoes loading end-April and early May. As for buyers, spot demand was seen from the Philippines for May to June delivery.