CFR Far East

The CFR Far East market softened for delivery to both Japan and China since US‑loading cargoes flowing into the Far East increased. For second‑half May Japan delivery, a 23,000mt propane cargo was concluded at a premium in the high $60's/mt to low $70's/mt to May CFR Far East quotations. For second‑half June delivery, several sellers moved on spot sales into China and information heard that one European trader sold a 46,000mt propane cargo for first‑half June delivery to an importer in East China on a Ningbo delivery basis at a premium in the $40's/mt to May CFR Far East quotations. Meanwhile, cargoes containing butane continued to flow largely into India and Southeast Asian countries, leaving limited availability for Far East delivery. As of Apr 23, the Japan Index was at $793.75/mt for propane and $893.75/mt for butane, while the China Index was at $877.75/mt for propane and $977.75/mt for butane, all down $10.25/mt from Apr 16.

FOB Middle East

Discussions for May loading continued to slow progress. This was because the Strait of Hormuz remained closed, sharply limiting the number of vessels able to transit. Kuwait Petroleum Corporation (KPC) declared force majeure on its May term supply. Saudi Aramco was expected to release acceptances for May loading, but it ultimately canceled May loadings. Market sources perceived that repair works at Juaymah might take time and LPG exports would likely not restart until July or August. Meanwhile, loadings from Yanbu in Saudi Arabia were said to be increasing, with around eight VLGCs viewed as scheduled to load April cargoes. Under such circumstances, one importer in South Korea was said to have shown bids for a 46,000mt 50:50 cargo and/or a 46,000mt propane cargo for May Yanbu loading.

Asia Pressurized Market

The pressurized cargo market plunged sharply from the previous week. While availability increased, buying interest retreated, leading to easing supply/demand conditions. One importer of refrigerated cargoes in Thailand and one importer in South China were seen to have room to sell May loading cargoes. Meanwhile, importers in Vietnam and the Philippines were cautious for high prices and did not enter spot discussions. In Vietnam, one major supplier in Vietnam was supplying cargoes in the domestic market. According to some sources, it was offering cargoes for May delivery at a premium of $350/mt to the April CP.