CFR Far East

The CFR Far East market fell last week since crude oil prices moved down early last week and the number of sellers increased. Japan Index as of Feb 5 was at $580.75/mt for propane and $600.75/mt for butane, down $4.50/mt from the previous week. China Index decreased by $6.00/mt to $612.50/mt for propane and to $607.50/mt for butane. In the CFR Japan, several sellers having 23,000mt propane cargoes for first-half March delivery moved on spot sales and demand for this timing was almost covered. For China, one US supplier having an even-split cargo of non-US origin for second-half March delivery to Yantai was actively offering in the market and available cargoes from the Middle East increased. The premium to the March CP shrank.

FOB Middle East

In the Middle East, discussion levels for 44,000mt 50:50 cargoes for March loading dropped to a discount of $18-20/mt to thee March CP. Sellers increased while buyers were inactive in spot purchase on an FOB basis since freight rates were soaring. Under this situation, supply/demand slackened. For 44,000mt 50:50 cargoes for March loading, several cargoes were traded. One cargo was reportedly traded at discount in the high $10's/mt to the March CP. Further, one British Major seemed to have sold an even-split cargo for March loading at a discount of $20/mt to the March CP. In addition, Qatar Energy issued a sell tender for 45,000mt 50:50 cargo for Mar 26-27 loading and supply was said to be plentiful.

Asia Pressurized Market

A seller appeared in the FOB South China market. One seller was reportedly offering spot cargoes in the spot market. The seller hoped to sell their cargoes at a premium in the $80's/mt to the CP. Since the importer was approaching to some buyers, views were heard that it had several available cargoes. In South Korea, one petrochemical company seemed to have carried out a sell tender for three pure butane cargoes for February loading. In Vietnam, supply/demand in Haiphong was said to be tight, and several cargoes were supplied from Malaysia. One Vietnamese major supplier apparently had bought cargoes from one Malaysian supplier to cover its demand in February.