CFR Far East

In the CFR Far East market last week, prices for Japan and China delivery sharply rose further due to a significant surge in crude oil prices amid continued tensions in the Middle East. As the closure of the Strait of Hormuz persisted, supply concerns for Middle East-loading cargoes intensified. As a result, buyers from India and Southeast Asian countries were trying to procure cargoes in the CFR market. While many buyers could not secure cargoes due to limited availability, information was heard that one Vietnamese petrochemical company purchased a 46,000mt propane cargo for first-half May delivery at a premium of $200/mt to the April CP. Japan Index significantly increased by $104.00/mt to $849.00/mt for propane and butane. China Index moved up by $1560/0/mt to $933.00/mt for propane and $928.00/mt for butane.

FOB Middle East

For Middle East loading, propane/butane 44,000mt cargoes for April loading were unchanged from the previous week, as the closure of the Strait of Hormuz continued, and many Middle East-loading cargoes could not be traded. Abu Dhabi's Ruwais refinery was attacked by Iran on Mar 10, although LPG production was said to be not affected, exports remained suspended and inventories appeared to be increasing, which was raising the possibility that LPG production could be forced to halt soon. Additionally, Kuwait reduced crude oil output and sources pointed out that LPG production might decline. Furthermore, Saudi Aramco's Juaymah facilities, where exports were halted due to equipment trouble late February, was seen taking longer time to resume amid heightened tensions in the Middle East.

Asia Pressurized Market

For South China loading, supply was tight while buying interest was robust. Offers were reported to rise to a premium of $200-300/mt to the CP and some buyers were considering to enter discussions at this level. Amid continued tensions in the Middle East, supply concerns intensified in Vietnam. Several suppliers in the country were unable to secure refrigerated cargoes, declared force majeure and continued to restrict domestic supply.

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