CFR Far East

　 In the CFR Far East market last week, prices strengthened in the wake of tightening supply/demand. The Rim Asia Index for propane and butane as of Mar 27 was at $627.75/mt and $617.75/mt respectively, up $20.00/mt from Mar 21. Traders and importers in the Far East were actively procuring spot cargoes while sellers did not move on offering as they felt that the market had room to rise. Far East importers were trying to take term cargoes containing butane from the US as butane prices were lower than propane prices, adding to the perception of tight propane supply. One importer in China bought a 46,000mt propane cargo for first-half May delivery via a buy tender at a premium in the high $20's/mt to May CFR Far East quotations. According to some sources, the number of participants was less than five.

FOB Middle East

　 The April CP was set at $615/mt for propane and $605/mt for butane, unchanged from the March CP. As supply from Saudi Aramco was tight, the CP was apparently higher than the paper market. For May loading, some buyers considered spot purchase while sellers showed no hurry to sell. Under such circumstances, firm talks were not heard. If talks were to take place, sources reckoned that discussion levels for 44,000mt 50:50 cargoes for May loading might be at discount in the low $10's/mt to the May CP.

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. According to some sources, one Vietnamese importer would take two cargoes. 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.