CFR Far East

In the CFR Far East market last week, prices dropped as sellers having second-half June delivery cargoes emerged in the market and crude prices moved down early last week. Rim Asia Index was at $816.25/mt for propane and $826.25/mt for butane as of May 12, down $15.25/mt from May 6. Due to congestions at the Panama Canal, the arrival of some cargoes for first-half June delivery was expected to be delayed to second-half June. Under such circumstances, sellers for pure propane cargoes for second-half June deliver were increasing in the market. On Wednesday, BGN sold a 23,000mt propane cargo for second-half June delivery to SK Gas at a level equivalent to a premium of $10/mt to the June CP. Further, one Chinese trader also sold a similar cargo. After these deals, Gunvor was offering a 46,000mt propane cargo and several sellers, such as one trader in the Middle East, two traders from Australia and one importer from East China showed selling positions for 23,000mt propane cargoes.

FOB Middle East

The June CP forecast was at around $805/mt for propane and around $815/mt for butane. For June loading, Middle East gas producers had room to sell spot cargoes for June loading. One Abu Dhabi gas producer, one gas producer in Qatar and one Kuwaiti gas producer could offer 44,000mt 50:50 or 25:75 cargoes for June loading and they were reportedly offering to Indian importers. On the other hand, one North Sea gas producer that had looked for an even-split cargo seemed to have covered its demand already.

Asia Pressurized Market

In the FOB South China market, some importers from South China apparently consider selling June loading cargoes at a premium in the high $30's/mt to the June CP. As for the FOB Southeast Asia market, spot cargoes ex-Malaysia and ex-Brunei seemed available in the market. Meanwhile, some traders were said to be considering to buy these cargoes to supply to Bangladesh.