CFR Far East

In the CFR Far East market last week, propane prices strengthened as a result of tightening supply/demand. As of Jan 15, the Japan Index spiked by $34.50/mt from last week to $567.25/mt for propane while the index for butane slid by $5.50/mt to $592.75/mt. While there were few sellers for pure propane loading from the US, buying interest from traders or South Korean players were vibrant, and supply/demand of propane tightened. For butane, inquiries from petrochemical companies were not brisk and butane prices for US loading softened, so that the CFR Far East butane prices moved down as well. The China Index increased by $14.00/mt to $600.00/mt for propane and $595.00/mt for butane. For China delivery, an importer in the country was reported to have purchased 23,000mt propane for February delivery at a premium of sightly below mid $70's/mt to the February CP on a CFR Taixing basis. The seller was seen to be a Japanese importer and the cargo would be loaded from Australia. Apart from this, spot demand for Vietnam or Indonesia also surfaced.

FOB Middle East

In the Middle East, some traders were trying to cover their short positions for February loading while sellers were limited. Demand from India was also firm and Bharat Petroleum Corporation Limited (BPCL) bought several cargoes for February and March loading via a buy tender that had closed on Jan 7. Hindustan Petroleum Corporation Limited (HPCL) also issued a buy tender for cargoes for February to April that would close on Jan 19. For March loading, firm talks were few but sources perceived that discussions might be held at a premium in the $10's/mt to the March CP. In the meantime, Saudi Aramco would check recommendations for the February CP from term customers on Jan 23 and Jan 28, according to sources.

Asia Pressurized Market

For South China loading, buying interest from Vietnam was seen in the market. One importer in the Philippines that was trying to buy spot cargoes was reported to have covered its demand for January, but the seller and the price were unclear. A refinery operated by the importer in the Philippines was said to have stopped operations due to a maintenance as planned. Pengerang Refining and Petrochemical(PRefChem), one Malaysian petrochemical company, did not move on spot sales of LPG cargoes. The company was focusing on exporting propylene and had no chance to sell LPG cargoes.