CFR Far East

In the CFR Far East market, prices for Japan delivery weakened due to retreating buying interest. Japan Index as of Feb 20 was at $569.00/mt for propane and butane, down $28.00/mt from the previous week. China Index increased by $2.50/mt to $635.50/mt for propane and $630.50/mt for butane, pulled up by strong crude oil prices along with heightening tensions in the Middle East. Early last week, buyers were limited since it was a national holiday in Singapore and China and talks lacked vibrancy. After that, several petrochemical companies in South Korea and China started spot purchase for propane cargoes for end-March through first-half April delivery. Japanese importers was said to have relatively low stocks and views were heard that they had room for spot purchases. On the supply side, intermittent fog in the USGC caused 5-10 days of cargo handling delays. If spot demand surged after the Lunar New Year holidays, supply/demand might tighten.

FOB Middle East

For Middle East loading, discussion levels for 44,000t 40:40 cargoes for March loading increased to a discount of $15-17/mt to the March CP. Information was heard that there was a deal for a similar cargo at a discount in the mid-high $10's/mt to the March CP. Buying interest was recovering and a discount to the CP shrank, according to sources. Under this situation, Saudi Aramco released acceptances for March loading to term customers. Information was heard that most cargoes loading schedules were significantly delayed. Although the quantity restrictions were not reported, some even-split cargoes seemed to have changed to propane-rich cargoes. Under this situation, views were heard that Saudi Aramco might have in shortage for butane supply.

Asia Pressurized Market

Along with the Lunar New Year holidays, discussions for South China loading were inactive. Only heard that one Thai refrigerated cargo importer had available cargoes and its selling ideas might be at a premium in the $80's/mt to the CP. For Southeast Asia loading, there was an available cargo of around 1,600mt for end-February through early March loading from Singapore. Since the olefine contents were reportedly high, sources viewed that few buyers might be interested in the cargo and it was unclear if the cargo was traded or not. In the meantime, spot demand from South Asia was firm and spot demand for Bangladesh delivery in February and March was appearing. Discussions for Bangladesh delivery were reportedly progressing at a premium in the $130's/mt to the CP.