CFR Far East

The CFR Far East market retreated last week owing to perceptions of ample supply for pure propane as well as falling demand from China. The Rim Asia Index dropped to $406.13/mt for propane and $488.13/mt for butane as of Feb 6, down $64.12/mt and $60.87/mt respectively from Jan 31. Several sellers apparently could sell pure propane cargoes for second-half February to first-half March delivery. On the other hand, the new coronavirus outbreak caused demand from China to considerably drop.

FOB Middle East

The expected March CP had been volatile. Due to weak crude prices and expectation of increasing supply, the March CP had been expected for $327/mt for propane and $392/mt for butane on Feb 4. Nevertheless, the expected March CP for propane and butane recovered to the $370's/mt and $440's/mt respectively after that. On the supply side, one Qatari producer could sell a 44,000mt propane or 75:25 cargo for Mar 21-24 loading. Meanwhile, one European trader was looking for a 44,000mt 50:50 cargo for March loading for delivery to India.

Asia Pressurized Market

For FOB South China cargoes, some refrigerated cargo importers from South China lowered their offers for second-half February loading at a premium in the high $50's/mt to the February CP since these importers had high inventories due to a considerable decrease in domestic sales caused by pandemic outbreak of the new coronavirus. Buyers with bearish sentiments, however, had no interest in spot purchase.

Sample Report