CFR Far East

In the CFR Far East market last week, prices softened on a recession in buying interest. As of Dec 25, the Japan Index weakened by $13.75/mt and $8.75/mt from Dec 25 to $532.75/mt for propane and $592.75/mt for butane. The China Index for propane declined by $0.50/mt to $586.00/mt for propane while that for butane climbed by $4.50/mt to $586.00/mt since the spread between propane and butane on the CP forecast shrank. Traders and a Major were trying to buy 23,000mt propane cargoes early last week while sellers did not show offers due to a delay in shipments in the USGC and brisk demand. However, from late last week, available cargoes increased in the market and most buyers covered their demand. As a result, the market was pulled down. For China, one Japanese importer was reported to have sold a pure propane cargo for Canada loading to a petrochemical company in East China.

FOB Middle East

In the Middle East, discussion levels for 44,000mt 50:50 cargoes for February loading were heard at a premium of $20-30/mt to the February CP. The January CP was set at $525/mt for propane and $520/mt for butane, higher than market expectations. In addition, the February CP forecast was revised up and a premium to the February CP for February loading decreased. However, supply was still seen to be tight. Iraqi supply was delayed due to firm domestic demand. Meanwhile, supply for March loading was expected to recover gradually. One Indian importer, Indian Oil Corporation (IOC) carried out a buy tender that had closed on Jan 7 for 44,000mt 50:50 cargoes for February through April loading. Information was heard that cargoes for March and April were awarded while cargo for February loading was not awarded due to high offers.

Asia Pressurized Market

For South China loading, active sellers did not emerge and supply was said to be tight. Two refrigerated cargo importers were focusing on supplying cargoes in the domestic market and had no interest in spot sales for pressurized cargoes. In Southeast Asia, due to rough weather, supply was delayed and importers in the Philippines decreased stock levels. These importers were trying to buy spot cargoes while sellers were few. One major supplier in Malaysia had no available cargoes for January and it would consider whether to sell for first-half February loading, depending on the price. In Vietnam, Nghi Son refinery carried out a buy tender closed on Feb 8 for one LPG cargo of 1,700-3,400mt each month for March to June delivery.