LPG in World Markets: Softer Freight, Favorable Pro-nap Spread Spurs Far East Activity

This current feature was extracted from the latest edition of Poten’s LPG in World Markets, a monthly service published on February 9, 2024.

The Far East LPG market sprung to life during early February 2024 as the region geared up for the long break for Lunar New Year celebrations. As many as three buy tenders were floated on February 5, 2024, that Poten was aware of. A total of two buy tenders were floated during the first two days of the month. Two more spot buy tenders were seen on February 6.

Although three buy tenders were heard to be cancelled, overall market sentiments appeared positive largely on recovering demand.

Public bids for half propane cargoes for arrival in the second half of March were placed at a discount to March Far East Index (FEI) swaps at the start of February, which changed to a premium soon thereafter. A public deal was also concluded at a premium of $8/t against March FEI on February 6.

In January, a major share of public bids for front month half cargo propane were placed at a discount to FEI swaps.

Public offers have also been aplenty so far this year; however, they have been outnumbered by bids, thus lending some support to regional prices; however, flat prices have softened.

CFR Japan prices started the year at $673.50/t for propane and $683.50/t for butane, which softened to $603.50/t and $617.50/t, respectively, as of February 6.

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