CFR Far East

　 In the CFR Far East market last week, prices for Japan and China delivery rose. The increases reflected a surge in crude oil prices and the April CP being set above market expectations. However, easing supply/demand of propane for May delivery capped further upside. The Japan Index showed propane at $921.00/mt, up $2.50/mt from the previous week and butane at $1,021.00/mt, up $22.50/mt. The China Index showed propane at $1,005.00/mt, up $2.50/mt and butane at $1,105.00/mt, up $27.50/mt. The reversal of the price spread between propane and butane on the CP pushed butane prices higher. Sellers of propane for May delivery began to emerge in the market, and some traders that had been indicating offers for 23,000mt propane cargoes into Japan were seen to be lowering their ideas to secure buyers. In this situation, a European trader reportedly sold a 23,000mt propane cargo for first-half May delivery, and a similar cargo for second-half May delivery was also said to have been traded on a CFR Chiba basis at a premium of $13/mt to April CFR Far East quotations.

FOB Middle East

　The April CP was set at $750/mt for propane and $800/mt for butane, rising by $205/mt and $260/mt, respectively, from the previous month. With LPG export operations remaining physically constrained due to damage to loading facilities along the Persian Gulf coast and the closure of the Strait of Hormuz, the CP was set at levels significantly above April CP swap prices, prompting some sources to view it as expensive. Meanwhile, others viewed it as relatively low when compared with soaring prices for the CFR Far East market and the results of checking with its term customers by Saudi Aramco. As a result, there were also views that the levels were reasonable. Regarding the Strait of Hormuz, information was heard that vessels that loaded 44,000mt 50:50 cargoes at Ruwais and Ras Laffan in early March transited the strait, with both vessels reportedly heading to India.

Asia Pressurized Market

　 In the pressurized cargo market, a Malaysian petrochemical company Pengerang Refining and Petrochemical (PRefChem) closed a sell tender on Apr 1. PRefChem was trying to sell 4,000mt of LPG for April loading. The tender was said to have been awarded to one North Sea gas producer. Meanwhile, for Vietnam delivery, several importers appeared to have purchased spot cargoes for April delivery to Haiphong at premium of $600/mt or higher to the April CP. With supply shortages remaining unresolved, some buyers were still seeking spot cargoes. The operating rate at Vietnam's Dung Quat refinery was reportedly rising. However, LPG production seemed not to be increasing, as the refinery prioritized maximizing output of petroleum products such as gasoline and gasoil.