CFR Far East

In the CFR Far East market last week, prices sharply dropped in the wake of retreating buying interest. The Rim Asia Index for propane and butane as of Apr 3 was at $601.75/mt and $591.75/mt respectively, down $30.00/mt from Mar 28. The US Trump administration announced new tariffs on Apr 2. Sources were expected the Chinese government to implement retaliatory measures by imposing tariffs on LPG from the US. Under this situation, bids for 23,000mt propane cargoes for second-half May delivery sank to a discount to the May CP.

FOB Middle East

The May CP was forecast at about $589/mt for propane and about $579/mt for butane. For May loading, discussion levels for 44,000mt 50:50 cargoes were seen to be at a premium in the low $10's/mt to the May CP. Some players were holding 44,000mt 50:50 cargoes but refrained from actively offering since buying interest for Middle East cargoes might strengthen if China took retaliatory measures against US tariffs. On the other hand, since the price spread between the CP and CFR Far East quotatons was widening in the paper market, Middle East cargoes were perceived to be relatively expensive. As a result, some sources reckoned that the FOB Middle East spot market might fall to a discount in the $20's/mt to the $30's/mt to the May CP.

Asia Pressurized Market

For Southeast Asia loading, a North Sea gas producer was keen on spot sales for Malaysia loading in April. The producer was said to be considering selling cargoes on a CFR basis with its own vessels. Further, a Thailand importer appeared to have room for spot sales for April loading. Meanwhile, a Thailand refiner was reported to have sold two cargoes for April loading on an FOB basis. One of the cargoes was expected to be supplied to Cambodia.