RIM Market News >  Weekly Summary

LPG: Feb 4-8: Prices falling on weak crude market

2019/02/11 07:00

CFR Far East

   The CFR Far East market dropped late this week along with falling crude prices. In addition, as loading operations were delayed in the USGC and US inventories increased, Mont Belvieu prices declined. This also weighed on the CFR Far East market. For March delivery, 23,000mt propane cargoes ex-US were discussed at a premium of about $4-9/mt to the March CP. On the other hand, spot demand for even-split cargoes receded this week.    

 

FOB Middle East

   The March CP was expected to be at about $420/mt for propane and about $450/mt for butane. For March loading, one Indian importer was expected to have demand for a 44,000mt 50:50 cargo for Mar 10-11 loading. Further, two traders were looking for 44,000mt 50:50 cargoes. On the supply side, offers were heard at a premium in the $10s/mt to the March CP. On the other hand, most Middle East producers apparently had no spot availability for March loading.

 

Asia Pressurized Market

   For FOB South China, owing to increasing procurement costs of refrigerated cargoes, discussion levels for second-half February loading rose to a premium of $48-53/mt to the February CP. For delivery to Vietnam, talks were muted due to the Lunar New Year (TET) holidays.

 

Japan Domestic Market

  In the truck market, spot cargoes for February lifting were discussed at Yen 55,200-55,300/mt for propane and Yen 55,500-55,800/mt for butane in Keihin. Bearish sentiments strengthened that the March CP might be below the February CP and this pulled down the market.

 

LPG (English) report sample

Tokyo : LPG Team  Koyashiki  +81-3-3552-2411
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