CFR Far East

In the CFR Far East market, prices for Japan and China delivery strengthened as supply/demand was perceived to be tight. Japan Index as of Feb 26 was at $624.50/mt for propane and butane, up $55.50/mt from the previous week. China Index rose by $5.50/mt to $641.00/mt for propane and $636.00/mt for butane. Saudi Aramco was said to have halted LPG exports in March due to damages to trestle carrying propane and butane at its Juaymah facility. Reflecting this, cargoes from the US might flow into India and Southeast Asia, which import considerable volumes from Saudi Arabia, some sources perceived. This gave rise to views that cargoes for delivery to the Far East from the US would decrease. Pertamina in Indonesia conducted a buy tender for an even-split cargo for delivery on Mar 16-25 after troubles in Saudi Arabia.

FOB Middle East

For Middle East loading, discussion levels for 44,000mt 50:50 cargoes for March loading significantly increased by $17/mt to flat to a premium of $2/mt to the March CP. The trestle carrying the propane and butane pipes at Jauymah in Saudi Arabia was damaged, so Saudi Aramco reportedly stopped exports of LPG from Ras Tanura until March. In view of tightening supply/demand, spot prices for 44,000mt 50:50 cargoes for loading in March and April rose to a premium to the CP, some sources said. On the other hand, Indian importers requested other Middle Eastern gas producers to increase their term supply volumes to cover lack of supply. Apart from this, Saudi Aramco did not release the March CP on Feb 26, when it was supposed to be announced.

Asia Pressurized Market

For March loading from South China, one major Vietnamese supplier was reportedly looking for cargoes for South China loading in the spot market. The supplier was in shortage in supply and it needed to procure spot cargoes from South China or Southeast Asia. Some sources viewed that discussions for South China loading might progress at a premium in the mid $70's/mt to the March CP. On the other hand, supply to Haiphong in Vietnam remained tight. Although some importers requested to increase term cargoes to one major supplier in Vietnam, the supplier did not respond to them and these importers had to buy spot cargoes. Buying ideas were heard at a premium of around $100/mt to the March CP, but no sellers entered discussions at this level. Besides that, GS Caltex in South Korea carried out a sell tender for five butane cargoes for March loading from Yeosu closing on Feb 26.