CFR Far East

In the CFR Far East market last week, propane prices went up due to strong buying interest. The Rim Asia Index for propane was at $614.00/mt as of May 9, up $16.00/mt from May 2. That for butane was at $604.00/mt, down $17.00/mt. Buying interest from traders and Chinese petrochemical companies was strengthening and the propane market moved up. As for supply, the awarded prices in auctions for vessels to pass through the Panama Canal were surging and there were also concerns about congestion. As the arrival timing of US cargoes in the Far East was unclear, most sellers refrained from showing firm offers. As a result, buyers raised bids and rushed into discussions. For butane, one British seller was offering US-origin cargoes and one Middle Eastern trader could offer cargoes containing butane. Supply was seen to be plentiful.

FOB Middle East

The June CP was forecast at about $538/mt for propane and about $533/mt for butane. For June loading, some sellers could apparently sell 44,000mt 50:50 cargoes. Discussion levels were seen to be at a premium in the high $10's/mt to $20/mt to the June CP. Kuwait Petroleum Corporation (KPC) was said to have awarded its sell tender closed on May 8 for a 44,000mt 50:50 cargo for Jun 12-13 loading to a Middle East trader affiliated to Saudi Aramco.

Asia Pressurized Market

On an FOB South China basis, availability increased and the market moved down. One seller apparently considered selling second-half May loading at a premium in the mid-high $40's/mt to the May CP. Another seller also had room for spot sale. In Southeast Asia, one Malaysian petrochemical maker conducted a sell tender for two cargoes for mid-May and late May loading.