CFR Far East

In the CFR Far East market last week, butane prices were down since the spread between propane and butane prices on the expected CP erased. The Rim Asia Index was at $610.50/mt for propane as of Mar 28, unchanged from Mar 22. That for butane was at $628.50/mt, down $5.00/mt. For second-half April delivery, the number of sellers and buyers was decreasing and supply/demand seemed to be balanced. In the middle of last week, a 23,000mt propane cargo was traded at a premium of $4/mt to April CFR Far East quotations and sources perceived that the market might not be changed from this level. In the meantime, demand for petrochemical use in China or South Korea was strengthening and buyers were expected to emerge going forward.

FOB Middle East

The April CP was expected at around $625/mt for propane and at around $625/mt for butane. Sources reckoned that the price spread between butane and propane in the April CP should be erased since supply/demand of cargoes containing butane in the Middle East was slack. For spot discussions for April loading, several sellers had 44,000mt 50:50 cargoes and supply appeared to be ample. Selling ideas were heard in the high $20's/mt discount to the April CP.

Asia Pressurized Market

On an FOB South China basis, some sellers had room to sell spot cargoes for April loading. On the other hand, buying interest appeared to be weak. As a result, the market softened. In Southeast Asia, domestic demand in Vietnam from household end-users was not seen to be strong. As a result, Vietnamese importers were inactive in spot purchase.