CFR Far East

In the CFR Far East market last week, propane prices gained on firm buying interest. On the other hand, propane prices were $20 per metric ton (/mt) above butane prices in the CFR Far East market since the spread between propane and butane widened in the expected January CP amid weak butane demand. Rim Asia Index for propane was at $577.75/mt, up $10.00/mt from Dec 18 while Rim Asia Index for butane was at $557.75, down $10.00/mt. On second-half delivery, two 23,000mt propane cargoes were traded at levels equivalent to $593-594/mt on Dec 22. A Chinese trader seemed to have bought a 23,000mt propane cargo for first-half February delivery. As for supply, about three sellers such as one importer from East China were seen to have spot availability for 46,000mt propane cargoes for end-January to early February delivery but these sellers refrained from indicating firm offers at present, concerning the arrival of cargoes might be delayed.

FOB Middle East

A rise in CFR Far East prices caused the January CP forecast for propane to increase last week to $500-505/mt while that for butane was relatively unchanged at $480-485/mt. Though supply/demand for propane clarified to be tight, butane supply appeared to be abundant. A 44,000mt propane cargo for Jan 20-Feb 2 loading from Qatar was rumored to have been traded but this was confirmed. Nevertheless, as active sellers for propane cargoes of US origin were hardly observed in the CFR Far East market, several players were said to have shown interest to buy the cargo. On the other hand, supply for cargoes containing butane was plentiful. Some sellers such as a Turkish trader apparently had spot availability for 44,000mt 50:50 cargoes for January loading.

Asia Pressurized Market

On FOB South China, one importer from South China had no interest in selling cargoes for January loading, focused on domestic sales in China. Regarding term discussions for CFR Vietnam, one importer from Haiphong recently concluded a term contract for 2021 at a premium in the mid $80's/mt to the CP.

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