LPG: May 31-Jun 4: Firm crude market sends prices higher
CFR Far East
The CFR Far East market rose last week on account of firm crude prices. Rim Asia Index for propane and butane was at $587.50/mt and $582.50/mt as of Jun 3, up $12.50/mt and $2.50/mt respectively from May 28. In the spot market, the number of sellers for first-half July delivery increased since congestions eased at the Panama Canal while several traders were seeking pure propane for covering their short-positions in the marker for second-half July delivery. In the CFR China market, pure propane demand for petrochemical use remained firm.
FOB Middle East
The June CP was set at $530/mt for propane and $525/mt for butane, higher than expected due to rising crude prices. The July CP was expected at $535-540/mt for propane and $530-535/mt for butane. 44,000mt 50:50 cargoes for second-half June to early July loading were mainly discussed in the spot market. The market was at a discount of $5/mt to a premium of $3/mt to the July CP last week.
Asia Pressurized Market
On FOB South China, sellers raised their offers for second-half June loading to a premium in the high $40's/mt to the June CP owing to an increase in procurement costs of refrigerated cargoes. Regarding CFR Vietnam, spot demand did not appear since domestic demand was weak in Vietnam due to the COVID-19 outbreak.