CFR Far East

The CFR Far East market rose last week along with strong crude oil prices. Japan Index as of Jan 29 was at $618.50/mt for propane and $605.25/mt for butane, up $7.00/mt from the previous week. China Index increased by $2.00/mt to $618.50/mt for propane and to $613.50/mt for butane. The February CP was set higher than market expectations and the March CP forecast was revised up. This supported the market as well. For first-half March delivery, sellers did not show offers actively while traders were trying to buy pure propane cargoes. One major steel maker in South Korea, POSCO, was said to have bought a pure propane cargo for Mar 10-15 delivery at a premium in the $50's/mt to the March CFR Far East quotations via a buy tender. Nevertheless, some market sources expected that sellers having US-origin cargoes might emerge and a premium to CFR Far East quotations or the CP might drop.

FOB Middle East

In the Middle East, Qatar Energy (QE) was heard to have carried out a sell tender for an even-split cargo for loading in late February. Originally, QE was trying to sell a 45,000mt 50:50 cargo but two MGC-sized cargoes seemed to have been finally awarded. Information was heard that one Indian importer would take the cargo and the price was at around flat to the February CP. On Jan 29, Saudi Aramco released the February CP to its term customers. It was set at $545/mt for propane and at $540/mt for butane, up by $20/mt from the previous month. Reflecting this, discussions shifted from February to March loading. Discussion levels for 44,000mt 50:50 cargoes for March loading were perceived to be at flat to the March CP. As potential available cargoes were seen, it was viewed that sellers were difficult to find buyers at a premium to the March CP.

Asia Pressurized Market

In South China, one refrigerated cargo importer sold a cargo for first-half February loading at a premium of around $90/mt to the February CP. Nevertheless, some sources perceived that the deal was done at a premium in the $90's/mt to the February CP and possible discussion levels should be at the same level since supply was tight. A sell tender issued by Pengerang Refining and Petrochemical(PRefChem), one Malaysian petrochemical company, was said to have been awarded. The company was reported to have changed the volume of the cargo from 1,800mt to 2,500mt. One South Korean trader seemed to have won, but the price was unclear. The trader would use its time-chartered vessel.