CFR Far East

The CFR Far East market rose last week along with strengthening demand. Japan Index as of Jan 22 was at $578.25/mt for propane, up $11.00/mt from the previous week and at $598.25/mt for butane, up 5.50/mt. China Index increased by $16.50/mt to $616.50/mt for propane and to $611.50/mt for butane. Japanese and Korean importers and Chinese petrochemical makers moved on spot purchase for delivery in second-half February and March and their strong buying interest sent the market higher. For China delivery, operators of propane dehydrogenation (PDH) plants carried out their buy tenders one after another. Discussion levels for propane for delivery to East China increased to a premium in the high $80's/mt to high $90's/mt to the CP. However, some of them skipped buying as offers were elatively high, and Jinneng Chemical in North China, Liaoning Kingfa in North-east and Sinobenny in South China cancelled their tender.

FOB Middle East

In the Middle East, discussion levels for 44,000mt 50:50 cargoes were falling to a premium in the $10's/mt to the February CP since Indian importers gradually covered their demand and supply/demand slackened. Under this situation, fresh availability emerged. Qatar Energy issued a sell tender for 45,000mt 50:50 cargo for late February loading. On the other hand, a trouble in refinery operated by Kuwaiti gas producer was resolved and exports from Saudi Arabia's Jafurah project would be brought forward. Market sources perceived that supply/demand in March might be loose. Regarding cargoes for March loading, information was heard that a 44,000mt 50:50 cargo for March loading was traded at a discount to the March CP.

Asia Pressurized Market

One importer in the Philippines was said to have spot demand for prompt delivery. According to sources, the importer bought a pressurized cargo from an Asian trader and covered its demand already. Nevertheless, the price and the delivery timing were unknown. Spot demand for prompt delivery to Bangladesh was also seen. Some sources pointed out that the state owned company in the country was trying to buy LPG cargoes in the spot market.