CFR Far East

The CFR Far East market rose for both Japan and China delivery. The move was driven by rising crude prices, as there were no clear signs of the Strait of Hormuz reopening. In addition, USGC-Far East freight rates via the Panama Canal surged to $300/mt and above, providing further support to CFR Far East prices. As of May 14, the Japan Index stood at $940.50/mt for propane and $1,040.50/mt for butane, up by $120.00/mt from May 7, while the China Index rose by $90.00/mt to $994.50/mt for propane and $1,094.50/mt for butane. For China delivery, several petrochemical companies, such as Huayi Petrochemical, Tianjin Bohai, Grand resource, and Ningbo Kingfa conducted buy tenders for June-delivery propane. However, with limited available cargoes, these tenders were not awarded. Some petrochemical companies were also heard to have purchased through private negotiations.

FOB Middle East

In discussions for May loading, one Middle East trader affiliated with an Abu Dhabi gas producer was reported to have sold an Oman-loading 44,000mt 50:50 cargo to an importer in India at a premium of $200-250/mt to the May CP on an FOB basis. The cargo was initially loaded in Ruwais, and was seen undergoing STS operations in Oman after passing through the Strait of Hormuz. Meanwhile, no firm deals were heard for June loading. Saudi Aramco was scheduled to check with term customers the first recommendation for the June CP on May 20, followed by the second time on May 22, with the June CP expected to be announced on May 25. However, there were views that Aramco would not supply term cargoes in June as well, due to operational issues at Juaymah.

Asia Pressurized Market

The pressurized cargo market was still inactive due to sluggish demand in consumption courtiers. No demand from the Philippines was seen last week. For South China loading, sellers were observed while buyers did not emerge in the market. Under such circumstances, discussion levels were unchanged from the previous month. From Brunei, one cargo for early June loading was sold on an FOB basis. One South Korean trader might have procured the cargo and it would supply to Bangladesh. However, importers in Bangladesh did not rush into spot purchase at the moment and buying interest was relatively weak.