CFR Far East

In the CFR Far East market last week, CFR Far East prices advanced due to firm buying interest. Rim Asia Index was at $847.75/mt for propane and $857.75/mt for butane as of Apr 27, up $6.75/mt from Apr 22. Buyers for June delivery emerged in the spot market. Traders were trying to cover their short position and several Far East importers including Japanese importers and Korean importers were reported to have spot demand for propane. Nevertheless, three European traders seemed to have room to sell 46,000mt propane cargoes and sources pointed out that supply/demand was not significantly tight. In the CFR China market, before holidays from early May, petrochemical companies and one importer in South China moved on spot procurement for second-half May through first-half June delivery.

FOB Middle East

The May CP was set at $850/mt for propane and $860/mt for butane, lower by $90/mt and $100/mt respectively from the previous month. The May CP for propane and butane was set lower than expected. Some sources pointed out that this was due to slack supply/demand, given that several cargoes for May loading seemed available while there were few buyers in the market. Actually, several sellers had available cargoes. Saudi Aramco was offering a 44,000mt 25:75 cargo for second-half June loading and one trader in the Middle East or one Japanese importer could sell a similar cargo for May loading from Yanbu. Further, one Abu Dhabi gas producer and one Kuwaiti gas producer were said to have room to offer spot cargoes for May through June loading as well.

Asia Pressurized Market

In the FOB South China market, one importer from South China offered May loading cargoes at a premium in the low $40's/mt to the May CP. Meanwhile, few buyers moved to purchase May loading cargoes. As for the FOB Southeast Asia market, one Malaysian supplier focused on term supply and had no spot cargoes for May loading to sell.