CFR Far East

In the CFR Far East market last week, prices went up due to firm buying interest. The Rim Asia Index for propane and butane as of Jan 10 was at $632.25/mt and $617.25/mt respectively, up $34.50/mt and $29.50/mt from Dec 26. As the spread between propane and butane prices on the CP expanded, a rise in butane prices was limited. Buying interst from traders trying to cover their short positions for first-half February delivery as heightening. 23,000mt propane cargoes were traded last Thursday at a premium of $9-10/mt to February CFR Far East quotations (equivalent to $628-629/mt or a discount of $1/mt to flat to the February CP as of that day). Apart from that, one Chinese petrochemical company bought a 46,000mt propane cargo for Feb 1-10 delivery to Ningbo from one Japanese importer. Demand from China was also seen to be recovering and this pushed up the market.

FOB Middle East

The February CP was forecast at about $627/mt for propane and about $617/mt for butane. For February loading, players taking term cargoes from the Middle East seemed to have room to sell 44,000mt 50:50 cargoes. Further, Qatar Energy issued a sell tender closing Jan 14 at 10:00 Doha time with validity until 17:00 on Jan 15 for a 45,000mt 75:25 cargo for Feb 16-23 loading. On the other hand, a European trader seemed to be looking for a 44,000mt 50:50 cargo. Discussion levels for similar cargoes for February loading were seen to be at a discount of $15/mt to the February CP.

Asia Pressurized Market

For discussions for South China loading, information was heard that a Thailand importer holding terminals in Zhuhai and Swatow sold spot cargoes with unclear details. The cargoes were supposed to be delivered to Batangas in the Philippines. Meanwhile, a South China importer was apparently moving on sales for February loading. The importer was showing offers at a premium in the $50's/mt to the February CP but buyers with interests for engaging in talks did not appear. For Southeast Asia, one importer apparently focused on selling to Bangladesh. The importer seemed to have recently secured large time-chartered pressurized vessels for delivery to Bangladesh.