CFR Far East

CFR Far East prices fell last week, weighed down by weak crude prices as well as perceptions of loose supply/demand. Rim Asia Index as of Mar 18 was at $257.25/mt for propane and $267.25/mt for butane, down $40.25/mt from Mar 13. On second-half April delivery, several traders had room for spot sales while buying interest was weak. One Japanese importer had bid a 23,000mt propane cargo for second-half April delivery but eventually bought the cargo at a premium of about $25/mt to the April CP. After the deal, the Japanese importer apparently finished talks for April delivery. In addition, another Japanese importer that had the end-of-financial year accounting period in March already secured enough cargoes for April delivery and retreated to the sidelines. On May delivery, active buyers were hardly observed. Meanwhile, several spot cargoes were available in the market. Thus, supply/demand was slack.

FOB Middle East

Supply of cargoes ex-Middle East was ample. Saudi Aramco had reportedly supplied six additional cargoes for end-March to April loading in total so far in addition to term cargoes for April loading. Further, Qatari and Abu Dhabi producers apparently sold mixed propane/butane cargoes for April loading this week. Due to increasing supply and weak crude prices, the expected April CP was revised down to $230/mt for propane and $240/mt for butane in the morning on Mar 19.

Asia Pressurized Market

For FOB South China, some refrigerated cargo importers could apparently sell April loading at a premium in the mid-high $50's/mt to the April CP. Spot demand, however, remained weak due to the COVID-19 outbreak. Thus, firm bids were not heard.

Sample Report