RIM Market News >  Weekly Summary

LPG: Mar 4-8: Prices gain midweek but recede on falling crude

2019/03/11 07:00

CFR Far East

   Last week, the CFR Far East market rose in views of scarcity of supply for April delivery in the middle of the week. Nevertheless, the market considerably retreated last Friday due to falling crude prices during Asian trading hours. A 23,000mt propane cargo had been traded at a premium of $29/mt to the April CP last Friday. On the other hand, the spread between butane and propane narrowed. With several butane cargoes ex-US were moved to India as well as Indonesia, perceptions of tight supply were receding.

 

FOB Middle East

   The April CP was expected to be at about $465/mt for propane and about $480/mt for butane. The results of a buy tender issued by Indias Hindustan Petroleum Co (HPCL) that had closed last Tuesday was not unknown. Through the tender, HPCL was looking for a 44,000mt 50:50 cargo to be delivered to Visakhapatnam (Vizag) and Haldia during Mar 6-20, or a 22,000mt 50:50 cargo on a CFR Vizag basis. On the other hand, one European trader showed buying ideas for a 44,000mt 50:50 cargo at a premium of $5/mt to the April CP in order to resell the cargo to India. 

 

Asia Pressurized Market

  For FOB South China, discussion levels for second-half March loading were reported at a premium of $45-55/mt to the March CP. Most sellers were not keen on spot sales owing to low inventories. Offers were heard at a premium of $55-58/mt to the March CP.

 

Japan Domestic Market

   In the truck market, spot prices for March lifting gained to Yen 58,500-58,700/mt for propane and Yen 62,200-62,700/mt for butane in Keihin due to scarcity of spot supply. As some importers had stocks at reasonable levels and did not rush into spot sales.

 

LPG (English) report sample 

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