CFR Far East

In the CFR Far East market last week, prices dipped in the wake of retreating buying interest. The Rim Asia Index for propane and butane as of Jan 30 was at $635.75/mt and $625.75/mt respectively, down $2.75/mt from Jan 24. Along with the Luner New Year holidays, talks were thin from late last week. Japanese importers were seen to have high stocks and their spot demand was expected to be limited. In the meantime, sellers were checking the loading operations in the US and stood on a wait-and-see stance. In the US, due to heavy fog, ports closed temporarily. Some market sources were concerned that loading might be delayed if the foggy weather was prolonged.

FOB Middle East

The February CP was set at $635/mt for propane and $625/mt for butane, above market expectations. Sources pointed out that this was because Saudi Aramco imposed minus 10% tolerance on term propane supply for February and propane supply was perceived to be tight. For March loading, both buyers and sellers took a wait-and-see stance and firm talks were not heard.

Asia Pressurized Market

For South China loading, there were not many offers from Chinese importers before the Lunar New Year holidays in China. For delivery to Southeast Asia, one Philippines importer was said to move to resell term cargoes. It could sell cargoes of 2,500mt per month for February to April delivery at a premium in the high $90's/mt to the CP on a CFR basis. Meanwhile, another Philippines importer was looking for truck lots for January delivery.