CFR Far East

The CFR Far East market dropped last week owing to weak crude prices. Rim Asia Index was at $561.50/mt for propane and $521.50/mt for butane as of Mar 25, down $9.75/mt and $14.75/mt respectively from Mar 12. Nevertheless, for second-half April delivery to Japan, demand from traders trying to cover their short positions limited the magnitude of the loss. Meanwhile, for second-half April delivery to East China, active sellers appeared and a pure propane was traded at a premium of $2/mt to the April CP last Thursday. For delivery to China, propane demand from propane dehydrogenation (PDH) plant was robust. 　

FOB Middle East

One Qatari producer moved to sell a cargo for late April loading again. The producer apparently sold a pure propane cargo to one importer from East China based on a May CFR Far East quotations. Meanwhile, supply of cargoes containing butane was seen to be more plentiful than that of pure propane. Saudi Aramco seemed to hold high butane inventories. Under this situation, the spread between propane and butane in the expected April CP enlarged to $35/mt. The April CP was expected at $570/mt for propane and $535/mt for butane at the moment.　

Asia Pressurized Market

On FOB South China, several importers from South China offered April loading at a premium in the low $30's/mt or above to the April CP. Nevertheless, active buyers were not seen in the market. Regarding CFR Vietnam, some Vietnamese importers might reduce intakes of term cargoes for April due to weak domestic demand.　

Sample Report