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Weekly SummaryInternational/Markets

LPG: Jun 29-Jul 3: Supply remains ample

CFR Far East

Rim Asia Index for propane and butane as of Jul 2 was at $326.25 per metric tons (/mt) and $306.25/mt, down $3.50/mt from Jun 26. The market tracked movements in crude prices. Spot supply was still ample. In particular, regarding pure propane cargoes, several sellers such as one Chinese importer were keen for spot sales. Propane cargoes for first-half August delivery to Japan were discussed at a discount in the high $10's/mt to the August CP. Meanwhile, butane demand for petrochemical use was increasing. Several butane cargoes were traded on a CFR Korean basis, according to sources.


FOB Middle East

The July CP was set at $360/mt for propane and $340/mt for butane. Moreover, the expected August CP was revised up to about $336/mt for propane and about $316/mt for butane due to strong crude prices. Nevertheless, supply/demand of spot cargoes further slackened in the FOB Middle East market. A sell tender that had closed on Jul 1 issued by Kuwait Petroleum Corp (KPC) was apparently not awarded. Through the tender, KPC was trying to sell a 44,000mt 75:25 cargo for Aug 1-2 loading. Meanwhile, Qatar Petroleum for the Sale of Petroleum Products Company Limited (QPSPP) issued a sell tender for a 45,000mt 75:25 cargo for Aug 4-7 loading, as reported earlier. The tender would close on Jul 7 at 12:00 Doha time with bids valid until 17:00 hours on Jul 8. Moreover, some players taking term cargoes from the Middle East also contemplated reselling in the FOB Middle East market as well, according to sources. Nevertheless, with few active buyers seen in the market, talks were subdued.


Asia Pressurized Market

For FOB South China, one refrigerated cargo importer with a terminal in Dongguan could sell pressurized cargoes for second-half July loading at a premium of $39/mt to the July CP. Nevertheless, spot demand for July loading was already covered, according to sources. Regarding CFR Vietnam, amid weak domestic demand in Vietnam, one importer from Haiphong was not interested in spot purchase. With falling export of industrial products from Vietnam, demand from factories was dull. 


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