CFR Far East

In the CFR Far East market last week, prices went down due to increasing supply. The Rim Asia Index was at $617.00/mt for propane and $640.00/mt for butane as of Apr 11, down $14.00/mt from Apr 5. Sellers having cargoes for second-half May delivery were gradually increasing and supply was seen to be ample. This weighed on the market. Formosa Chemical Industries Ningbo (FIC) awarded its buy tender closed on Apr 11 for a 46,000mt propane cargo for May 20-30 delivery to Ningbo at a high-single digit premium to May CFR Far East quotations (equivalent to $613/mt or a premium of $23/mt to the May CP as of Apr 11). Information was heard that nine or ten sellers participated in the tender. According to sources, some operators of a propane dehydrogenation (PDH) plant were trying to resell their cargoes on hand in the spot market due to worsening of profitability.

FOB Middle East

For May loading, potential buyers and sellers were seen. A British Major and a Japanese importer seemed to have room to sell 44,000mt 50:50 cargoes. On the other hand, some players such as a North Sea producer and another British Major with term supply commitments to India apparently had room for spot purchase. Discussion levels for 44,000mt 50:50 cargoes for May loading were seen to be at a discount in the $20's/mt to the May CP. The May CP was forecast to be about $590/mt for propane and about $595/mt for butane.

Asia Pressurized Market

On an FOB South China basis, buying interest was thin and discussion levels for May loading were seen to have fallen to a premium of $50/mt and below to the May CP. However, owing to firmness in the South China domestic market, some sellers appeared unwilling to sell at this level. In Southeast Asia, activity was subdued as neither buyers nor sellers were seen.