LPG: Jun 22-26: Prices lose due to slack supply/demand
CFR Far East
The CFR Far East market considerably declined last week due to weak buying interest and falling crude prices. Rim Asia Index for propane and butane as of Jun 25 was at $326.50 per metric tons (/mt) and $306.50/mt, up $17.50/mt and $22.50/mt respectively from Jun 19. Regarding pure propane cargoes, active buyers were hardly seen in the market. Meanwhile, as for cargoes containing butane, only one Korean importer was expected to have room to procure a 23,000mt butane cargo for second-half July to first-half August delivery.
FOB Middle East
Supply/demand is also slack in the FOB Middle East market. Although several sellers such as one European trader were expected to have room to sell cargoes for July loading, active buyers were hardly observed in the market. Only one North Sea producer apparently had room to purchase a 45,000mt 50:50 cargo for end-July loading. Nevertheless, the North Sea producer was apparently hoping to conduct not an outright purchase but a time-swap. Owing to slack supply/demand, the expected July CP was revised down to about $345/mt for propane and about $325/mt for butane.
Asia Pressurized Market
For FOB South China, one refrigerated cargo importer with a terminal in Dongguan could apparently sell pressurized cargoes for July loading at a premium in the low $40's/mt to the July CP. Buyers, however, were not interested in purchasing at this level. Regarding CFR Vietnam, one importer focused on checking its current sales and inventory level, and would decide whether to move to buy a cargo for July delivery to Haiphong after the release of the July CP.