CFR Far East

In the CFR Far East market, prices for Japan delivery strengthened due to heightening buying interest. As of May 8, Japan Index moved up by $7.75/mt from May 2 to $503.75/mt for propane and $483.75/mt for butane. Demand for pure propane cargoes for June delivery from traders was firm and this pushed up the market. On the other hand, one East China importer sold three 23,000mt propane cargoes for first-half June delivery and more Chinese players seemed to move on reselling their cargoes ex-US. On the other hand, supply of butane cargoes to Japan or South Korea was limited while petrochemical companies were keen on buying butane cargoes. Under this situation, supply/demand of butane cargoes was tighter. Prices for China delivery gained due to an upward revision of the CP forecast. China Index was up by $10.00/mt to $644.00/mt for propane and $591.00/mt for butane. One North China propane dehydrogenation (PDH) plant operator procured Canadian cargoes for May and June delivery. The sellers were said to be two Japanese importers and one of them did a location swap deal with the operator, according to some sources.

FOB Middle East

For June loading, butane availability emerged. Kuwait Petroleum Corporation (KPC) closed a sell tender on May 9 at 13:00 Kuwait time with validity until 18:00 on the same day of a 44,000mt butane cargo for Jun 6-10 loading. Results were not heard. With butane sellers observed, supply/demand of butane seemed to be weak. For 44,000mt 50:50 cargoes, sellers offered at a discount of $10/mt to the June CP. On the other hand, buyers' ideas were apparently at a discount of $20/mt to the June CP or lower. The June CP was forecast at about $580/mt for propane and about $560/mt for butane.

Asia Pressurized Market

Exports from South Korea were said to be firm. According to some sources, there might be some deals for June loading and traders might move on spot purchase for cargoes for June loading from South Korea going forward. A major Malaysian supplier was said to have sold spot cargoes for May and June loading. Sources reckoned that one of the cargoes would be supplied to the Philippines.