CFR Far East

In the CFR Far East market, prices for Japan and China delivery gained on rising buying interest. As of May 29, Japan Index moved up by $17.00/mt and $7.00/mt from May 23 to $550.0/mt for propane and $520.00/mt for butane. One Japanese importer was looking for a 23,000mt propane cargo for second-half June delivery and several traders trying to cover their short positions for 46,000mt propane cargoes emerged in the spot market. On the other hand, some Chinese players were reluctant to procure cargoes of US-origin and gave priority to secure cargoes of non-US origin via a buy tender. One operator of a propane dehydrogenation (PDH) plant in East China procured two propane cargoes for July delivery at a premium in the high $20's/mt to the July CP. The company did not accept cargoes from the US and Canada.　

FOB Middle East

The June CP was set at $600/mt for propane and at $570/mt for butane, down by $10/mt and by $20/mt respectively. The propane CP was set above market expectations while that for butane was as expected. For July loading, several sellers had 44,000mt 40:40 cargoes and offers were reported at a discount of $20/mt to the July CP. However, buyers were inactive in spot procurement at this level. Buying ideas were only heard at a discount of $40-50/mt to the July CP as of now.

Asia Pressurized Market

From Southeast Asia, Pengerang Refining and Petrochemical(PRefChem), was trying to sell five cargoes in total. The company carried out a sell tender closing on Jun 3 for a 2,500mt LPG cargo each for Jun 4-5, 5-6, 8-9 and 10-11 loading, and a 2,000mt LPG for Jun 12-13 loading. PRefChem was said to have failed to resume operations of its cracker and had surplus LPG cargoes that it planned to use as a feed stock for petrochemical products. On the other hand, the previous tender issued by PRefChem was seen to have been awarded. Through the tender that had closed on Thursday, the company was trying to sell a 2,500mt of LPG cargo for May 30-Jun 1 loading. Although details such as the awarded price were unclear, the cargo might be supplied into Vietnam.