CFR Far East

The CFR Far East market declined for both Japan and China delivery amid easing supply/demand. As of May 21, the Japan Index fell by $52.50/mt from the previous week to $888.00/mt for propane and $988.00/mt for butane, while the China Index declined by $14.50/mt to $980.00/mt and $1,080.00/mt, respectively. In early last week, several Chinese petrochemical companies moved to procure pure propane cargoes. However, amid concerns over elevated prices for June delivery cargoes and as the CFR Far East market moved into backwardation, more players delayed procurement timing to July delivery, leading to a gradual decline in buying interest. For Japan delivery as well, the number of sellers in the spot market was increasing. The trade level for a 23,000mt propane cargo for second‑half June delivery to Chiba fell to a double-digit premium to June CFR Far East quotations from a premium of $100/mt to the quotations.

FOB Middle East

Saudi Aramco was reported not to have issued acceptances for June loadings and to have indicated that it would not supply LPG to term customers in June as well. Meanwhile, information was heard that repairs at the Juaymah facilities, where issues had occurred in late February, would be completed by the end of May, although this remained unconfirmed. Amid a closure of the Strait of Hormuz, export volumes from the Middle East were still limited. As a result, demand was shifting toward African cargoes as an alternative to Middle East-origin supply. One Indian importer purchased spot cargoes from an Algerian gas supplier, although loading dates were not known. In addition, one Indian supplier was said to have procured an MGC-sized cargo for June 12-16 loading in Algeria.

Asia Pressurized Market

For South China loading, several sellers including one refrigerated cargo importer in Thailand and Chinese refrigerated cargo importers were observed in the market. One of these importers offered cargoes for June loading at a premium of $210-230/mt to the June CP while bids were only heard at a premium of $200/mt and below to the June CP. In Southeast Asia, demand remained low. Importers in the Philippines had high inventories and one importer in the country tried to resell their term cargoes for Brunei loading. Some cargoes were expected to be flowing into Bangladesh. According to sources, some cargoes were traded into Bangladesh at a premium of $220-250/mt to the June CP on a CFR basis.