CFR Far East

In the CFR Far East market last week, prices dropped as supply was increasing. The Rim Asia Index was at $591.50/mt for propane and $607.50/mt for butane as of Feb 1, down $28.00/mt from Jan 28. Several sellers could offer pure propane cargoes for first-half March delivery and supply was seen to be plentiful. Two European traders and one importer from North China were showing selling interest in the spot market, according to sources. For butane, some petrochemical companies in Japan were looking for LPG cargoes and one of them procured a butane cargo for end-February through early March delivery via a buy tender.

FOB Middle East

The February CP was set at $630/mt for propane and $640/mt for butane, up $10/mt from the previous month. There were views that the CP was set higher than market forecasts as it was a demand season. Further, as naphtha prices were higher than LPG, demand for LPG from petrochemical companies in the Far East emerged and buying interest for butane strengthened. Sources reckoned that, because of this, the February CP for butane was higher than propane by $10/mt. On the other hand, the March CP was expected to be at around $580/mt for propane and at around $590/mt for butane, considerably higher than the February CP.

Asia Pressurized Market

On an FOB South China basis, few buyers were looking for spot cargoes in the market. On the other hand, sellers were also not active in spot sale. A South China importer seemed to have high stocks but offers from the importer were not heard. In Southeast Asia, a Malaysian petrochemical maker was said to have sold a cargo loading early February via a tender.