CFR Far East

In the CFR Far East market last week, CFR Japan prices dropped in the second half of the week due to loose supply/demand. Rim Asia Index for propane and butane as of Apr 30 was at $328.75 per metric tons (/mt), down $10.75/mt and $0.75/mt respectively from Apr 23. Supply/demand for pure propane cargoes of US origin for June delivery seemed to be slackening. In addition to weak buying interest from Japanese and Korean importers, spot demand from China for June delivery was seen to dwindle compared to May delivery as domestic supply for refinery cargoes was expected to increase. On Apr 28, a 46,000mt propane cargo for first-half June delivery was traded at a premium of $27/mt to the June CP.

FOB Middle East

On second-half May loading from the Middle East, some traders that had term cargoes on hand were interested to resell them in the spot market. A 44,000mt 50:50 cargo for May 24-25 loading from Mina Al-Ahmadi was offered at $336/mt for propane and butane. Moreover, a 45,000mt 50:50 cargo for Jun 1-30 loading was available at $275/mt for propane and $245/mt for butane. Nevertheless, buying were not keen on purchasing at these levels due to dull demand from India and Indonesia. Under this situation, the June CP was forecast to be $261/mt for propane and $231/mt for butane. Meanwhile, the May CP was set at $340/mt for propane and butane.

Asia Pressurized Market

For FOB South China, some importers could apparently sell May loading at a premium of $50/mt to the May CP. Active buyers, however, were not observed in the market. Regarding CFR Vietnam, one importer from Haiphong saw its inventory level fall due to smooth domestic sales along with the lifting of a lockdown in Vietnam and requested term suppliers to increase term cargoes for May delivery.

Sample Report