CFR Far East

In the CFR Far East market, propane prices strengthened due to strong buying interest.

Japan Index as of Feb 12 was at $597.00/mt for propane, up $16.25/mt from the previous week. That for butane was at $597.00/mt, down $3.75/mt since many players were taking cargoes including butane from the US and the number of buyers in the CFR Far East market was not decreasing. In the meantime, available cargoes from the Middle East were observed and supply/demand slackened. China Index increased by $36.37/mt to $628.00/mt for propane and to $628.00/mt for butane. Before long holidays in China, several petrochemical companies carried out a buy tender. One operator of a propane dehydrogenation (PDH) plant in South China was said to have procured a 46,000mt propane cargo for March delivery to Qinzhou at a premium in the high $80&s/mt to the $90's/mt. The seller was seen to be another petrochemical company in South China and the awarded price was said to be lower than the current market. In East China, offers for 46,000mt propane cargoes were reportedly at a premium of $110/mt to the CP and above.

FOB Middle East

For Middle East loading, discussion levels for 44,000mt 50:50 cargoes for March loading were unchanged at a discount of $18-20/mt to the March CP. Although many sellers were observed, talks were slow to progress. As freight rates for Middle East-Far East remained high, buyers were cautious about purchase on an FOB Middle East basis. Southeast Asian importer gave up buying spot cargoes on an FOB basis and entered discussions on a CFR basis. With supply/demand being seen slack, some market sources pointed out that the discount to the March CP for March loading might deepen going forward. Qatar Energy had issued a sell tender closing on Feb 11 at 12:00 Doha time for a 45,000mt 50:50 cargo for Mar 26-27 loading. The awarded price was said to be at a discount in the high $10's/mt to the March CP.

Asia Pressurized Market

Suppliers in South China were seen to have room to offer spot cargoes, these importers did not have high stocks. These suppliers did not rush into spot sales and no firm offers were reported. Likewise, buyers did not appear. For Southeast Asia loading, there were available cargoes from Malaysia. According to some sources, a cargo for end-February loading from Port Klang was offered in the market. Although firm offers were not reported, sellers apparently hoped to offer at a premium in the $80's/mt. From Malaysia, there were also available cargoes for Tanjung Sulong loading and supply was said to be ample.