CFR Far East

In the CFR Far East market last week, prices weakened in the wake of retreating buying interest. The Rim Asia Index for propane and butane as of Mar 20 was at $597.75/mt and $587.75/mt respectively, down $11.50/mt from Mar 14. Several traders covered their short positions and fresh demand from Chinese players was limited. This weighed on the market. In the meantime, end-users in Japan entered spot discussions. One city gas company in Japan purchased a 23,000mt propane cargo for May delivery via a buy tender. Further, one major steel maker also bought a 11,000mt butane cargo for second-half April through end-May delivery. Apart from that, one petrochemical company issued a buy tender for a 12,000mt butane cargo for second-half April delivery, but it cancelled the tender since offer were high.

FOB Middle East

The April CP was forecast at about $610/mt for propane and about $600/mt for butane. For April loading, perceptions of tight supply emerged. Saudi Aramco was said to have released its April loading acceptance on Mar 20. Aramco apparently imposed minus tolerance on both propane and butane. Sources reckoned that LPG supply from Aramco was tight due to firm domestic demand for petrochemical use. Discussion levels for 44,000mt 50:50 cargoes for April loading were seen to have moved up to a discount in the high $10's/mt to the April CP. For May loading, a Chinese importer seemed to have room to sell a 44,000mt 50:50 cargo.

Asia Pressurized Market

For Southeast Asia loading, a Malaysian petrochemical maker, Pengerang Refining and Petrochemical (PRefChem), was conducting a sell tender closing on Mar 24. PRefChem was trying to sell one 2,500mt cargo for loading from Pengerang each on Apr 13-14, Apr 17-18, Apr 22-23 and Apr 25-26. Demand from Southeast Asia was apparently weak. An importer in the Philippines had enough inventories and had to take term cargoes, so it did not consider purchasing for delivery in April.