CFR Far East

In the CFR Far East market, prices for Japan delivery advanced on tight supply/demand. As of May 15, Japan Index moved up by $37.25/mt from May 9 to $549.00/mt for propane and butane. Along with a trade talks between the US and China on Apr 12, both countries significantly decreased additional tariffs for 90 days. Under this situation, discussions for US-origin cargoes into China were expected to be active and perceptions of tight supply/demand were heightening in the CFR Japan market. For delivery to China, a 46,000mt propane cargo for second-half June delivery to North China was traded at a premium of $9/mt to June CFR Far East quotations and talks for cargoes of US origin were heard again. Nevertheless, Chinese players already covered their demand with spot cargoes of non-US origin and term cargoes. Demand was weak while several players were reselling 44,000mt 50:50 cargoes or pure propane cargoes ex-Middle East in the market.

FOB Middle East

For June loading, supply of 44,000mt 50:50 cargoes was ample. Several sellers including Chinese players and traders taking term cargoes from the Middle East were moving to resell them in the spot market. On the other hand, as the CP was relatively high, buyers were not keen to purchase spot cargoes on an FOB Middle East basis. Sources pointed out that supply/demand of Middle East cargoes was slack. The June CP was forecast at about $586/mt for propane and about $566/mt for butane.

Asia Pressurized Market

As the domestic prices in China softened, refrigerated cargo importers in South China had stocks to sell and had room to sell pressurized cargoes in the spot market. Nevertheless, sellers remained offers at a premium in the $50's/mt to the June CP, considering procuring costs and the domestic market levels. In Southeast Asia, available cargoes were offered into the Philippines at low prices. Offers for a 2,000-2,500mt cargo for end-May through early June delivery were heard at a discount to the CP. The ship with the cargo was out of service and it would need to be towed. However, no buyers having interest in taking the cargo appeared in the market.