CFR Far East
In the CFR Far East market last week, both Japan delivery and China delivery rose sharply for a second consecutive week. Tensions in the Middle East escalated further, driving a surge in crude oil prices. Along with rising bunker costs, freight rates also stayed firm, which became an upside factor for the CFR Far East market. As of Mar 18, Japan Index significantly increased by $69.00/mt to $918.00/mt for propane and butane. China Index moved up by $69.00/mt to $1,002.00/mt for propane and $997.00/mt for butane. Amid reduced naphtha supply, petrochemical companies were seeking spot cargoes. One Taiwanese importer purchased a 46,000mt propane cargo for second-half April delivery as a petrochemical feedstock through a buy tender at a premium to the April naphtha quotations. In addition, one South Korean petrochemical company moved on spot purchase for May delivery cargoes, while one South Korean importer was trying to procure butane term cargoes for June to December delivery. In addition, Southeast Asian importers from Indonesia and Vietnam were still looking for cargoes for April delivery through a buy tender.
　
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, many Middle East loading cargoes remained difficult to be traded on a spot basis. Meanwhile, several cargoes transiting the Strait of Hormuz were observed. Two 44,000mt 50:50 cargoes for Ras Laffan in Qatar loading were seen passing through the strait and heading to India. In addition, two 44,000mt 50:50 cargoes from Iran were also seen transiting the strait. With tensions in the Middle East widely viewed as continuing for the time being, Saudi Aramco was said to have canceled term supply for April loading. There were also views that the resumption of the Juaymah facilities, where exports became impossible due to equipment damage in late-February, was likely to be delayed.
　
Asia Pressurized Market
In the pressurized LPG market in Asia, supply/demand remained tight. In South China loading discussions, one importer of refrigerated cargoes in Thailand was said to have offered at a premium in the $300's/mt to the April CP. Meanwhile, buying interest stayed strong, as one North Sea gas company was reportedly trying to purchase spot cargoes for the Philippines, while one Vietnamese supplier also appeared to have spot demand. In southern Vietnam, supply conditions remained tight, with one supplier raising selling prices for the domestic market and restricting sales volumes.