LPG: Mar 29-Apr 2: May CP expected to move down from Apr CP
CFR Far East
In the CFR Far East market last week, propane prices showed slight movements while butane prices rose since the spread between propane and butane in the April CP was at $30/mt on the contrary to market expectations. Rim Asia Index for propane was at $560.25/mt as of Apr 1, down $1.25/mt from Mar 26 while that for butane was at $530.25/mt, up $8.75/mt. For delivery to Korean, a buy tender issued by one player seemed to have been awarded. Though the tender, one 23,000mt propane cargo for early May delivery was reportedly awarded at a premium in the low $30's/mt to May CFR Far East quotations while one 23,000mt propane cargo for mid-May delivery was said to have been awarded at a premium in the mid $20's/mt to May CFR Far East quotations, according to sources.
FOB Middle East
The April CP for propane and butane was set at $560/mt and $530/mt respectively. The May CP was expected at about $510/mt for propane and about $480/mt for butane. One Kuwaiti gas producer issued a sell tender for a 44,000mt 50:50 cargo for end-April loading. Further, the Kuwaiti gas producer and one Qatari gas producer were expected to have room to sell spot cargoes for May loading. Discussion levels for second-half April to early May loading were heard at a discount in the mid $10's/mt to the May CP.
Asia Pressurized Market
On FOB South China, one refrigerated cargo importer could sell cargoes for April loading from Zhuhai at a premium in the mid-high $30's/mt to the April CP. Active buyers, however, were not seen in the market yet. As for FOB Southeast Asia, a Thai supplier with a floating storage offshore Indonesia could sell cargoes for April loading from Nipah at a premium in the high $40's/mt to $50/mt to the April CP.