CFR Far East

In the CFR Far East market last week, prices went up since buying interest was heightening. The Rim Asia Index was at $625.00/mt for propane and $648.00/mt for butane as of Apr 4, up $10.50/mt and $15.50/mt respectively from Mar 29. The spread between propane and butane prices widened and a rise in butane prices was larger than that for propane. Before the Qing Ming Festival holidays in China, several buyers were trying to secure cargoes in the spot market. One operator of a propane dehydrogenation (PDH) plant in South China and one petrochemical company in East China procured pure propane cargoes for May delivery. Further, one importer from Taiwan purchased two propane cargoes for early May delivery to Taiwan and Ningbo as well, On the other hand, supply of US-origin cargoes for first-half May delivery appeared few and supply/demand was said to be relatively tight.

FOB Middle East

The April CP was set at $615/mt for propane and $620/mt for butane, down $15/mt and $20/mt respectively from the previous month. Sources perceived that the April CP was set below market forecasts as demand for cargoes from the Middle East had been weak and spot discussions on an FOB basis had been conducted at a significant discount to the CP. In the spot market, Kuwait Petroleum Corporation (KPC) carried out a sell tender that had closed on Apr 3 for a 44,000mt 50:50 cargo for Apr 18-19 loading. According to sources, one European Major won. Information was heard that the loading date was changed to Apr 20-21 and the price was at a discount in the $20's/mt to the May CP.

Asia Pressurized Market

On an FOB South China basis, some Southeast Asian importers seemed to consider buying spot cargoes for May loading. On the other hand, some sellers apparently had room for spot sale. Discussion levels for May loading were seen to be at a premium of about $50/mt to the May CP. In Southeast Asia, a Malaysian petrochemical maker carried out two sell tenders. The first was closed early in the week for two cargoes loading early April. The second tender was closed at the end of the week for three cargoes loading Apr 10-24.