CFR Far East

In the CFR Far East market last week, prices moved down on a recession in buying interest. As of Dec 25, the Japan Index softened by $15.50/mt from the previous week to $546.50/mt for propane and $601.50/mt for butane. The China Index also declined by $14.50/mt to $586.50/mt for propane and $576.50/mt for butane. Chinese petrochemical makers or Taiwanese importers conducted buy tenders for second-half January to February delivery. Regardless of good demand, shipments in the USGC were disrupted due to the foggy weather, and many sellers refrained from offering as the arrival timing for US cargoes to the Far East was unclear. In addition to several tenders with no offers, posted offers levels were higher than prices that buyers hoped, so that most buy tenders were cancelled. In contrast, some importers appeared to cover delays in supply were moving to buy propane for first-half February delivery since some Japanese importers' vessels were waiting in the USGC due to heavy fog.

FOB Middle East

In the Middle East, discussion levels for 44,000mt 50:50 cargoes for January loading were still heard at a premium of $50-60/mt to the January CP. The market sentiment remained firm. One European trader was said to have bought an even-split cargo from at $550/mt for propane and butane from one Middle Eastern trader affiliated Abu Dhabi gas producer, but it was unconfirmed. After that, several buyers appeared in the market. On Dec 24, BWPS showed bids for 45,000mt 50:50 cargoes for Jan 18-22 loading at a level equivalent to $535/mt and Petredec was trying to buy a 45,000mt propane cargo for the same loading date at $530/mt. However, sellers were limited and no offers were reported.

Asia Pressurized Market

For South China loading, one refrigerated cargo importer was reported to have sold a cargo for January loading at a premium in the $80-90's/mt to the January CP. The importer seemed to have sold one cargo to one major supplier in Vietnam. Information was heard that one importer in the Philippines would take a cargo for Jan 6-8 loading. It was unclear whether the importer bought the cargo on a spot basis or took it under a term contract. In Brunei, there was an available cargo for mid-January loading. One importer in South Vietnam was looking for sellers to take term cargoes for next year as one major supplier in Vietnam requested to raise the selling prices to the importer next year by $15-17/mt from this year.