CFR Far East

The CFR Far East market softened last week as supply/demand slackened. Rim Asia Index for propane and butane was at $754.50/mt and $724.50/mt respectively as of Jan 20, down $17.50/mt from Jan 14. On propane cargoes for second-half February delivery, the number of buyers was decreasing. One Japanese trader and one Japanese importer were said to be looking for pure propane cargoes but these sellers seemed not to be in a hurry to enter talks. On the other hand, one European trader had spot availability for a 23,000mt propane cargo. In addition, some sellers were seen to still have 46,000mt propane cargoes on hand. Under this situation, perceptions of slack supply/demand heightened in the market. For discussions for cargoes containing butane, some buyers came out. Taiwan's CPC Corp. reportedly purchased a 22,000mt 50:50 cargo for February delivery. Further, Hanwha Total moved on spot purchase for end-February to early March delivery.

FOB Middle East

The February CP was forecast at around $728/mt for propane and around $698/mt for butane. Some Japanese importers were said to have interest to sell 44,000mt 50:50 cargoes for February loading while buyers were not seen in the market. A Qatari gas producer was seen to have sold a pure propane cargo for second-half February loading to an importer from North China at a discount of $35/mt to the February CP via a tender. On the other hand, one European trader seemed to have bought an even-split cargo for second-half February loading from Qatar at a discount of $25/mt to the February CP or the March CP linked. The trader was expected to move the cargo to Indonesia.

Asia Pressurized Market

For FOB South China market, active sellers were hardly observed ahead of the Lunar New Year holidays. One importer from South China focused on domestic sales in China and was not keen on selling pressurized cargoes for February loading. Meanwhile, the importer was looking for a spot cargo ex-Thailand for February delivery to South China.