RIM Market News >  Weekly Summary

LPG: Oct 9-13: Slack supply/demand sends prices lower

2017/10/16 07:00

CFR Far East 

The Rim Asia Index on Oct 13 was at $570.75 per metric ton (/mt) for propane and $575.75/mt for butane, down $13.25/mt and $8.25/mt respectively from Oct 6, weighted down by slack supply/demand. As spot demand for cargoes containing butane from Taiwan and Indonesia emerged, sources reckoned that the spread between propane and butane was erased in the premium to the CP. As a result, butane prices declined less sharply than propane. In the spot market, five 23,000mt propane cargoes for second-half November delivery were traded on Wednesday. After the deals, several sellers were still interested to sell spot cargoes.


FOB Middle East 


The November CP was expected to be set $558/mt for propane and $563/mt for butane. Abu Dhabi National Oil Co (ADNOC) in the United Arab Emirates (UAE) released its acceptance for November loading to term customers and several cargoes containing butane were delayed by two to three days. Nevertheless, large delays or advancements apparently did not emerge. On the other hand, as keen buyers and sellers were hardly observed in the market, talks were muted.


Asia Pressurized Market


For FOB South China for October loading, buyers contemplated spot purchase at a premium in the low $30’s/mt to the October CP while sellers showed counter offers at a premium in the mid-high $30’s/mt to the October CP. For CFR Vietnam, bids for first-half November loading were heard at a premium in the high $60’s to the November CP.



Japan Domestic Market

In the truck market, sellers took a bullish stance in view of perceptions of tight supply. In Keihin, discussion levels were reported in the low Yen 66,000’s/mt for propane and the low Yen 67,000’s/mt for butane. 


LPG (English) report sample

Tokyo : LPG Team  Seira Iha  +81-3-3552-2411
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