CFR Far East

In the CFR Far East market last week, prices went up due to firm buying interst. Japan Index as of Apr 24 was at $519.00/mt for propane and at $494.00/mt for butane, up $6.50/mt and $1.50/mt respectively. China Index was at $643.00/mt for propane and at $585.00/mt for butane, up $19.50/mt and $14.50/mt respectively. Players operating propane dehydrogenation (PDH) plants in China and Chinese importers carried out a buy tender. Non-US origin propane cargoes for June delivery were traded at a premium in the mid-high $60's/mt to the June CP into a PDH plant in South China and at a premium in the high $60's/mt to the June CP into a PDH plant in East China. On the other hand, available cargoes were increasing since Chinese players taking term cargoes from the US were apparently moving to resell them in the spot market.

FOB Middle East

The May CP was forecast at around $590/mt for propane and around $565/mt for butane. Qatar Energy was said to have sold via a tender closed on Apr 21 a 45,000mt 75:25 cargo for May 22-26 loading to a Middle East trader affiliated to Saudi Aramco at a premium of $15/mt to the high $10's/mt to the June CP or the June CP. Kuwait Petroleum Corporation (KPC) closed a sell tender on Apr 23 for a 44,000mt 50:50 cargo for May 25-26 loading. Information was heard that the winner was one European trader and the price was at a discount of $10/mt to the June CP. According to sources, buying interest from Chinese players for 44,000mt 50:50 cargoes was weak.

Asia Pressurized Market

If one refrigerated cargo importer in South China was to take part in spot discussions, it would show selling ideas at a premium of $50/mt and above to the May CP. Korea National Oil Corporation (KNOC) issued a sell tender closing on Apr 25 at 16:00 local time with validity until 16:30 for 20,000mt of pressurized cargoes to be loaded from Pyeongtaek during May 1 to Jun 30. In return, KNOC would buy a refrigerated cargo of 20,000mt via the tender. For Southeast Asia loading, a Malaysian petrochemical maker Pengerang Refining and Petrochemical (PRefChem) seemed to have awarded its sell tender closed on Apr 21 to a Middle East trader affiliated to Saudi Aramco or a major Malaysian supplier.