CFR Far East

In the CFR Far East market last week, prices were up due to heightening buying interest. The Rim Asia Index for propane and butane as of Apr 17 was at $570.25/mt and $533.75/mt respectively, up $37.25/mt and $20.75/mt from Apr 11. Spot talks for delivery to China were active. Especially, along with a trade conflict between the US and China, propane supply was expected to tighten and buying interest for non-US origin propane cargoeswas firm. Thus, a rise in propane prices was larger than that for butane prices. One Chinese importer bought a 46,000mt propane cargo at a premium in the mid $50's/mt to the May CP and one operator of a propane dehydrogenation (PDH) plant in South China was said to have procured a 46,000mt propane cargo for first-half June delivery at a premium in the mid $60's/mt.

FOB Middle East

Qatar Energy was moving to sell a 45,000mt 75:25 or 45,000mt 50:50 cargo for May 22-26 loading via a tender. As demand from Chinese players for propane-rich cargoes was strong, there were views that a 45,000mt 75:25 cargo would be awarded in this tender. Some sources felt that the awarded price might be at a premium of below $10/mt to the May CP. On the other hand, there were views that Saudi Aramco might impose quantity restrictions on term cargoes loading in May and June. However, some sources were skeptical about this since the Organization of the Petroleum Exporting Countries (OPEC) was planning to reduce crude production cuts. The May CP was forecast at about $575/mt for propane and about $555/mt for butane.

Asia Pressurized Market

From South Korea, GS Caltex was said to have sold one cargo for Apr 21-30 loading and three cargoes for May loading from Yosu via a sell tender that had closed on Apr 15 with validity through the same day. The price was apparently at a premium in the mid $40's/mt or below to the CP on an FOB basis. For Southeast Asia loading, Malaysian petrochemical maker Pengerang Refining and Petrochemical (PRefChem) issued a new sell tender closing Apr 21 for two 2,500mt cargoes to be loaded on May 8-9 and May 11-12. PRefChem had also carried out two sell tenders closed on Apr 14 and 17 but results were unclear. PRefChem was moving to sell a total of five cargoes through these three tenders.