CFR Far East

　 On CFR Far East market last week, CFR Japan prices declined on abundant supply. As of May 1, Japan Index for propane and butane was down by $17.50/mt and $22.50/mt from Apr 25 to $511.00/mt and $491.00/mt, respectively. Sellers for US cargoes gradually increased, and prices of 23,000mt propane arriving in first-half June got lower to a discount of mid-single digit (equivalent to $511/mt or a discount of around $56/mt to the June CP as of May 1) to June Far East quotations. On the contrary, CFR China prices gained on account of tightness in perceptions of supply/demand. China Index for propane and butane was bolstered by $2.00/mt and $7.00/mt from Apr 25 to $636.00/mt and $583.00/mt, respectively. One East China petrochemical company cancelled a tender to buy 46,000mt for Ningbo delivery on Jun 1-10 since the participants were few and offers were higher than expectations. With the market volatile due to the trade conflict between the US and China, sources pointed out that most players were inactive in selling, even though the delivery point was not in China.

FOB Middle East

　 Saudi Aramco set the May CP at $610/mt for propane and $590/mt for butane, down $5/mt and $15/mt respectively from the previous month. Most market players pointed out that these prices were higher than expectations. Along with a trade conflict between the US and China, perceptions of firm demand for Middle Eastern cargoes from China were cited as a bullish factor. Further, some sources pointed out that propane supply from Saudi Arabia was tight and Aramco might consider this as well. Regarding 44,000mt 50:50 cargoes for June loading, sellers remained offers at a single digit premium to the June CP while buyers did not have interest in entering discussions at this level. Chinese players were not moving on spot purchase for Middle Eastern cargoes at the moment. Under this situation, market sources believed that the deal for even-split cargoes might be done at similar level as buyers' ideas.

Asia Pressurized Market

　 A sell tender that Korea National Oil Corporation (KNOC) had closed on Apr 25 was apparently awarded. The awardee was said to be a Chinese player. The prices were not clear. Through the tender, KNOC attempted to sell the pressurized cargo of 20,000mt for loading from Pyeongtaek on May1 to Jun 30 while the company also imposed the condition that it would buy a refrigerated cargo of 20,000mt. A South Korean importer of refrigerated cargoes said that it received requests to purchase pressurized cargoes from Chinese players. The importer and another importer of refrigerated cargoes had pressurized cargoes and each importer was said to have room to supply around 40,000mt per month each.