CFR Far East

In the CFR Far East market last week, propane prices moved up due to firm buying interest. As of Feb 20, The Rim Asia Index for propane rose to $439.50/mt, up $3.25/mt from Feb 14. Meanwhile, Rim Asia Index for butane fell to $497.00/mt, down $16.25/mt. Several traders were moving on buying spot cargoes for pure propane cargoes ex-US for second-half March delivery to cover their short positions. On the other hand, spot availability for this timing seemed to be limited. Most sellers were apparently trying to check the situation about the Chinese government's elimination of high tariff on cargoes ex-US and possible delays in the arrival timing due to foggy weather in the USGC and refrained from showing firm offers. Further, buyers for pure propane cargoes ex-US for first-half April delivery emerged in the middle of this week. In addition, one Japanese importer intended to consider if they move on spot purchase or not going forward. On the other hand, butane prices declined on the back of retreating demand.

FOB Middle East

The expected March CP for propane and butane was revised up to the $410's/mt and the $460's/mt respectively due to rising crude prices. Saudi Aramco released its acceptance for March loading to its term customers. Aramco was said to have deferred term supply for four cargoes for March loading due to cuts in crude oil output. Meanwhile, one European Major seemed to be interested in selling a 44,000mt 50:50 cargo for mid-March loading. On the demand side, one European trader was reportedly seeking a 44,000mt 50:50 cargo for second-half March loading.

Asia Pressurized Market

For FOB South China cargoes, some refrigerated cargo importers from South China offered March loading at a premium in the high $60's/mt to the March CP. Buyers, however, were not interested in purchasing at this level since spot demand from neighboring countries such as Vietnam and the Philippines was weak. Regarding CFR Vietnam, many importers from Haiphong had excess inventories due to a considerable decrease in domestic sales.

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