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LPG: Dec 17-21: Firm demand limits magnitude of losses

2018/12/24 07:00

CFR Far East

   The LPG market this week fell, pulled down by a plunge in crude prices. Nevertheless, recovering demand for spot cargoes of non-US origin from mainly Chinese importers limited the magnitude of losses. A 23,000mt propane cargo for second-half January delivery was traded at $446/mt on Thursday. Further, a 44,000mt 75:25 cargo for second-half January delivery to China was reportedly traded at a level equivalent to a premium in the mid-high $30s/mt to the January CP early this week.


FOB Middle East

   The January CP was expected to be at about $410/mt for propane and about $395/mt for butane. A January loading 44,000mt 50:50 cargo had been reportedly traded at a premium of $5/mt to the January CP between European traders on Monday. Further, from late last week to early this week, a North Sea gas producer had reportedly sold an ex-Ras Laffan second-half January loading 44,000mt 50:50 cargo to a Turkish trader at a premium of $1/mt to the January CP. Besides that, a major European petrochemical company was said to have sold an ex-Mina Al-Ahmadi late December loading 44,000mt 50:50 cargo although details such as the buyer were unknown.


Asia Pressurized Market

   For FOB South China, some sellers seemed to consider selling at a premium of $50/mt or above to the January CP. One Far East player and one European trader, however, were wary of high prices and were not keen on spot purchase. Under this situation, discussion levels were heard at a premium of $40-45/mt to the December CP. On the other hand, regarding CFR Vietnam, some sources reckoned that deals for January delivery might be possible at a premium of $90-95/mt to the January CP.


Japan Domestic Market

   In the truck market, spot cargoes for January lifting were at Yen 57,000-58,000/mt for propane and Yen 54,000-55,000/mt for butane. One importer showed spot supply prices at Yen 57,800-58,800/mt for propane and Yen 54,500-55,500/mt for butane. 


LPG (English) report sample



Tokyo : LPG Team  Terauchi Chisato  +81-3-3552-2411
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