CFR Far East

The CFR Far East market fell last week due to falling crude prices. Rim Asia Index for propane and butane as of Sep 24 was at $376.50 per metric tons (/mt) and $406.50/mt respectively, down $3.75/mt from Sep 18. Due to the peak demand winter season approaching, several pure propane cargoes were apparently traded. One European trader seemed to have sold a 23,000mt propane cargo for second-half October delivery to another European trader at a discount of $13/mt to October CFR Far East quotation. A buy tender issued by Hanwha Total for pure butane was said to have been not awarded eventually. Sources reckoned that offers had been above Hanwha Total's expectations. Through the tender, Hanwha Total was looking for a 23,000mt butane cargo for Oct 23-29 delivery to Daesan.　

FOB Middle East

The expected October CP was revised down to about $366/mt for propane and around $371/mt for butane due to slack supply/demand. For October loading, several players such as one Japanese importer and one European trader were keen to resell on an FOB Middle East basis. Offers for 44,000mt 50:50 cargoes for mid-October loading were heard at a discount of $20/mt to the November CP. A sell tender issued by Kuwait Petroleum Corp (KPC) was not eventually awarded, according to sources. Through the tender that had closed on Wednesday with bids valid until the same day, KPC was trying to sell a 44,000mt 50:50 cargo to be loaded from Mina Al Ahmadi on Oct 21-22. For loading from West Africa, one European trader apparently won a sell tender issued by Angola's Sonangol although the price was unknown. Through the sell tender that closed on Monday with bids valid until the same day, Sonangol was trying to sell a 44,000mt propane cargo for Oct 18-20 loading.

Asia Pressurized Market

On FOB South China, several refrigerated cargo importers had interest in spot-export for October loading in order to reduce inventories. Offers were heard at a premium in the high $30's/mt to the low $40's/mt to the October CP. Regarding CFR Vietnam, although spot demand did not appear yet, domestic demand was gradually improving in Vietnam. Sales for the distribution of lunch at schools and to restaurants were slowly recovering. Under this situation, one Vietnamese importers would take term cargoes for October delivery as scheduled.

Sample Report