CFR Far East

In the CFR Far East market last week, prices gained in the wake of brisk buying interest. The Rim Asia Index for propane and butane as of Feb 20 was at $619.00/mt and $609.00/mt respectively, up $2.75/mt from Feb 14. Spot purchase for second-half March and first-half April delivery from traders was active. For delivery to China, one importer in Taiwan, an operator of a propane dehydrogenation (PDH) plant in Ningbo, and one operator of a PDH plant in North China moved on spot procurement. However, many sellers participated in the tender issued by the importer in Taiwan and perceptions of ample supply were cited as a bearish fator late last week. For butane, as the spread between LPG and naphtha prices widened, demand for petrochemical use was improving. One Japanese petrochemical company and one South Korean petrochemical company bought a pure butane cargo for first-half April delivery.

FOB Middle East

The March CP was forecast at about $606/mt for propane and about $596/mt for butane. For March loading, buying interest marginally recovered. BGN bought a 45,000mt 50:50 cargo for Mar 30-31 loading from Ruwais from AGT at $577/mt for propane and $567/mt for butane. This price was equivalent to $572/mt or a discount of $29/mt to the March CP. Apart from this, E1 bid for a 45,000mt 50:50 cargo for Mar 30-31 loading at $570/mt for propane and $560/mt for butane (equivalent to $565/mt or a discount of $36/mt to the March CP).

Asia Pressurized Market

Malaysian suppliers seemed to have high inventories. A Malaysian major supplier had plentiful stocks and indicated offers to some traders for loading in early March. A North Sea gas producer was believed to have room to sell cargoes for March loading. This was because domestic demand in Malaysia was lackluster and inventories were high. In Thailand, LPG exports were reported to be declining.