LPG: Feb 15-19: Prices sharply rebound as supply is expected to fall
CFR Far East
The CFR Far East market considerably rebounded last week. This was because loading operations were delayed due to a cold wave in the USGC and supply of cargoes for second-half March to first-half April delivery was likely to tighten. Rim Asia Index was at $608.75 per metric ton (/mt) for propane and $588.75/mt for butane as of Feb 18, down $48.50/mt from Feb 12. Traders trying to cover their short-positions bid for 23,000mt propane cargoes at $620/mt but sellers' responses were dull. Sellers were apparently checking the delivery timing of their cargoes to the Far East.
FOB Middle East
FOS spot prices dropped to a discount of $40-45/mt to the March CP due to slack supply/demand. A sell tender issued by Qatar Petroleum for the Sale of Petroleum Products Company Limited (QPSPP) was reportedly awarded for a 45,000mt 50:50 cargo for March loading at a discount in the $40's/mt to the March CP. Through a sell tender issued by BASF, one Chinese Petrochemical player apparently bought a 44,000mt 50:50 cargo for Mar 10-14 loading from Kuwait at a discount of $35/mt to the March CP. Meanwhile, BASF issued a new sell tender that would close on Feb 22 with offers valid on the same day. Offered in the tender was a 44,000mt 50:50 cargo per month for April to June loading from Mina Al Ahmadi.
Asia Pressurized Market
On FOB South China, several refrigerated cargo importers were interested in selling pressurized cargoes for March loading since domestic demand was dull in China after the Lunar New Year holidays. Regarding CFR Vietnam, buying interest for spot cargoes remained sluggish due to weak domestic demand in Vietnam. A lockdown was still imposed in some cities of Vietnam owing to the COVID-19 outbreak.