CFR Far East

In the CFR Far East market last week, prices moved up due to firm crude oil prices. The Rim Asia Index for propane and butane as of Dec 26 was at $597.75/mt and $587.75/mt respectively, slightly up $2.00/mt from Dec 20. Sellers for second-half January delivery remained in the market. One trader offered a 23,000mt propane cargo at a discount of $6.5/mt to January CFR Far East quotations (equivalent to $589.5/mt or a discount of $38.5/mt to the January CP) last Tuesday, but most buyers for this timing already covered their demand. Talks were shifting to February delivery. However, buying interest for February delivery seemed not to be strong. One operator of two propane dehydrogenation (PDH) plants in North China considered spot purchase for February delivery. Considering the run rates of its plants, the company hinted that it would curtail its purchase volume.

FOB Middle East

The January CP was forecast at about $625/mt for propane and about $620/mt for butane. For January loading, active buyers and sellers were not seen and trade seemed to have drawn to a close. For February loading, many players were waiting for the release of the January CP and firm talks were not heard. However, as buying interest for Middle East cargoes appeared to be week, sources reckoned that discussion levels for 44,000mt 50:50 cargoes for February loading were at a discount in the $20's/mt to the February CP.

Asia Pressurized Market

If discussion levels for cargoes for loading in South China were at a premium of $40-45/mt to the January CP. Buying interest was weak. Although a Vietnamese importer had room to purchase for second-half January loading, buyers except the importer were not observed. In Southeast Asia, demand from the Philippines was said to be stable. Nonetheless, buyers saw the CP relatively high, so demand was not increasing so much. In Haiphong, vessel operations were seen to be disrupted by bad weather.