CFR Far East

In the CFR Far East market last week, prices strengthened in the wake of heightening buying interest. The Rim Asia Index for propane and butane as of Mar 13 was at $611.25/mt and $601.25/mt respectively, up $13.50/mt from Mar 7. Traders trying to cover their short positions were actively looking for spot cargoes. In the market for first-half April delivery, a 23,000mt propane cargo was traded at $614/mt (equivalent to a premium of $18/mt to the April CP). For second-half April delivery as well, a similar cargo was traded at a premium of $19/mt to April CFR Far East quotations (equivalent to $606/mt or a premium of $10/mt to the April CP) among traders. Along with this, one importer from Taiwan and one operator of a propane dehydrogenation (PDH) plant in North China carried out buy tenders. The operation rates of PDH plants in China were reportedly recovering to 75-80% and market sources believed that demand from China might recover.

FOB Middle East

The April CP was forecast at about $596/mt for propane and about $586/mt for butane. For April loading, a Middle East trader seemed to have bought a 44,000mt 50;50 cargo at a discount in the high $10's/mt to the April CP. However, the seller was unclear. Discussions on 44,000mt 50:50 cargoes for April loading were seen to be at the above level. Talks on April loading were fading while discussions on May loading were heard. Buyers bid at a discount of $20/mt to the May CP. Sources reckoned that discussions for 44,000mt 50:50 cargoes for May loading were conducted at a discount in the high $10's/mt to the May CP.

Asia Pressurized Market

For Southeast Asia loading, spot demand was weak. A Malaysian petrochemical maker, Pengerang Refining and Petrochemical (PRefChem), was reported to have sold four cargoes to a Middle East trader affiliated to Saudi Aramco through a tender for a total of six cargoes for loading in mid March to early April. The tender was closed on March 5. Then, the Middle East trader could apparently not decide buyers of the above cargoes from Pengerang. A Malaysian major supplier was awarded the remaining two cargoes and reckoned resold these to a North Sea gas producer.