CFR Far East

In the CFR Far East market last week, prices for Japan and China delivery softened. The Japan Index showed propane at $912.50/mt, down $2.50/mt from the previous week and butane at $1,012.50/mt, down $8.50/mt. The China Index showed propane at $996.50/mt, down $8.50/mt and butane at $1,096.00/mt, down $8.50/mt. Along with a two-week ceasefire between the US and Iran, crude oil prices plunged on Apr 8 and fixed prices in the CFR Far East market also moved down. For propane cargoes for May delivery, sellers were gradually appearing in the market while buying interest from traders and Far East importers was also seen. One Japanese importer was said to have bought a 46,000mt propane cargo for first-half May delivery from an importer in South Korea. For butane, supply/demand remained tight. One importer in Japan having a 44,000mt 50:50 cargo ex-Darwin, Australia, was reportedly offering propane cargoes into China while was expected to take butane to Japan for petrochemical companies. One petrochemical company and one importer both in South Korea carried out a buy tender for butane for second-half May through June delivery, but there were reportedly no offers.

FOB Middle East

In discussions for May loading, no specific deals were seen. The US and Iran agreed to a two-week ceasefire on Tuesday, raising expectations for freer navigation through the Strait of Hormuz. However, immediately after the agreement, Israel attacked Hezbollah, a pro-Iran group in Lebanon, prompting retaliatory action from Iran and leading to a renewed escalation of tensions. Iran continued to maintain control over the Strait of Hormuz even after the ceasefire agreement. It was said to have imposed a cap on the number of vessels allowed to transit per day and to be requiring transit permits and payment of transit fees. Meanwhile, a vessel that loaded a 44,000mt 50:50 cargo at Yanbu was confirmed to be heading toward tanks in South China operated by a Thai importer via India. In addition, information emerged that several vessels that loaded 44,000mt 50:50 cargoes in Iran were heading toward Southeast Asia or Northeast Asia.

Asia Pressurized Market

In the pressurized cargo market, premiums to the CP significantly fell amid a growing sense of easing supply/demand since several importers secured refrigerated cargoes. One importer in Thailand was said to have imported a refrigerated cargo from Yanbu and tried to sell for South China loading. Meanwhile, buying interest was weak since buyers felt that the price was high. In Vietnam, supply/demand rapidly slackened and some importers were trying to resell their cargoes on hand since domestic prices moved down later last week.