CFR Far East

In the CFR Far East market last week, prices lost in the wake of increasing supply. The Rim Asia Index for propane and butane as of Feb 13 was at $615.25/mt and $605.25/mt respectively, down $7.25/mt from Feb 7. Although hevay fog occured at major ports in the USGC, loading operations were gradually recovering. Along with this, the number of sellers was increasing and this weighed on the spot market. On the other hand, traders were trying to cover their short positions, but importers had thin interest in spot purchase. Two Japanese importers were reported to have finished spot discussions for March delivery and only one buyer from China conducted a buy tender last week.

FOB Middle East

The March CP was forecast at about $602/mt for propane and about $592/mt for butane. For March loading, spot supply was ample. Qatar Energy issued a sell tender closing Feb 18 with validity until Feb 19 for a 45,000mt 75:25 or a 45,000mt propane cargo for Mar 20-28 loading. Apart from this, a Middle East trader moved to sell a 45,000mt 50:50 cargo and a 45,000mt propane cargo. A European trader also ffered a 45,000mt 50:50 cargo.

Asia Pressurized Market

For Southeast loading, Pengerang Refining and Petrochemical (PRefChem) apparently awarded a sell tender. The winners were reported to be a Malaysian major supplier and a Middle East trader affiliated to Saudi Aramco. The Malaysian supplier was awarded more than four cargoes at least and the Middle East trader was awarded the remaining cargoes. PRefChem had tried to sell a total of six 2,500mt cargoes for Feb 19-20, Feb 23-24, Feb 27-28, Mar 4-5, Mar 8-9 and Mar 12-13.