CFR Far East

　 In the CFR Far East market last week, prices for delivery to both Japan and China fell sharply, reflecting a significant pullback in crude prices early last week as well as a growing sense of slacking supply/demand. Sellers that could offer pure propane cargoes for both second-half April and first-half May delivery from the US emerged, while Chinese players and Far East importers refrained from purchasing amid concerns about high price levels, which gave rise to slightly looser supply/demand. Meanwhile, buying interest for cargoes containing butane remained robust with sellers maintaining a bullish stance. In a buy tender conducted by one importer in Taiwan, bids for propane/butane even-split cargoes for May delivery significantly exceeded those for pure propane cargoes. In addition, information was heard that in a buy tender held by one importer in Vietnam for delivery on May 1-20, 44,000mt 50:50 cargoes were offered at a premium of $500/mt or higher to the May CP. However, some buyers apparently moved to have purchased. Pertamina in Indonesia, which was reported to have procured a 44,000mt 75:25 cargo from Australia for end-April delivery.

　

FOB Middle East

　 For Middle East loading, prices for 44,000mt 50:50 cargoes for April loading surged sharply from the previous week. Strong buying interest for Yanbu loading in Saudi Arabia emerged, which strongly pushed prices higher. Amid continued tensions in the Middle East, tightening supply/demand for butane-containing cargoes due to supply shortages in India, Southeast Asia and the Far East was seen as a bullish factor. Under such circumstances, several vessels were believed to have transited the Strait of Hormuz, with many appearing to be delivered to India, where domestic supply was tight. some of these vessels, which loaded 44,000mt 50:50 cargoes from Iran, were heading to China.

　

Asia Pressurized Market

　 In the pressurized market in Asia, prices surged sharply from the previous week. Amid continued tensions in the Middle East, supply/demand in Southeast Asia tightened, which pushed prices higher. While buying interest was strong for deliveries into the Philippines and Vietnam, where domestic supply shortages intensified, sellers showed a cautious stance. For South China loading, one importer of refrigerated cargoes in Thailand operating terminals at Zhuhai and Shantou (Swatow) was said to have sold cargoes privately to the Philippines. Although the prices were not clear, information was heard that the importer had previously offered at a premium of $570/mt to the April CP.