RIM Market News >  Weekly Summary

LPG: May 6-10: Propane prices above butane prices

2019/05/13 07:00

CFR Far East

   The CFR Far East market fell due to a considerable downward revision of the expected June CP early last week. Nevertheless, propane prices for first-half June delivery were at a premium of $501-511/mt due to tight supply/demand for propane prices for delivery to Japan. On the other hand, butane prices lacked upward momentum with plentiful supply of even-split cargoes ex-US. Butane prices were $20/mt below propane prices.  


FOB Middle East

   The June CP was expected to be at $450-455/mt for propane and $435-440/mt for butane. Active buyers and sellers were not seen in the market. Demand from India was dull. Indian importers had actively secured spot cargoes prior to the national election and eventually built sufficient stocks. Some importers faced difficulty to accommodate some cargoes delivered during the first half of May. Under this situation, at least two Indian importers seemed to defer the laycan of term cargoes for May and June loadings.


Asia Pressurized Market

   For May loading from South China, some refrigerated cargo importers apparently lowered their offers to a premium of slightly below $60/mt to the May CP and seemed to rush into spot sales. Buyers, however, were not keen on spot purchase at this level. Under this situation, there were views that deals might be possible at a premium of $54-59/mt to the May CP.


Japan Domestic Market

   The domestic market fell in last week. Sellers with cargoes on hand held bearish sentiments and were apparently keen on spot sales. In the truck market for Keihin, spot cargoes for May lifting were discussed at Yen 63,500-64,000/mt for propane and Yen 67,600-67,800/mt for butane.


LPG (English) report sample 


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