CFR Far East

The CFR Far East market extended gains last week due to rising crude prices. Nevertheless, ample supply of pure propane cargoes for second-half August delivery to Japan limited the magnitude of the gain. Rim Asia Index for propane and butane as of Jul 21 was at $370.00 per metric tons (/mt) and $365.00/mt respectively, up $12.25/mt from Jul 17. Several sellers held pure propane cargoes and supply was ample. One 23,000mt propane cargo was traded at a level equivalent to a discount of $30/mt to the August CP on Tuesday.

FOB Middle East

The expected August CP was revised up to $385/mt for propane and $375/mt for butane due to rising crude prices. Nevertheless, supply/demand for August loading was still slack. One Chinese importer could sell a 45,000mt propane cargo for Aug 17-18 loading from Qatar at a discount of $20/mt to the August CP. In addition, one Qatari producer was seen to have spot availability for second-half August loading. Further, one Abu Dhabi producer was said to have room to supply three or four cargoes for August loading. Meanwhile, the results for a CFR sell tender issued by KPC were sketchy. Through the tender that had closed on Tuesday with validity on the same day, KPC was trying to sell a 44,000mt 75:25 cargo for Aug 26 to Sep 9 delivery.

Asia Pressurized Market

For FOB South China, refrigerated cargo importers could sell cargoes for August loading at a premium in the low $30's/mt to the August CP. Buyers, however, were not interested in purchasing at this level. As for CFR Vietnam, spot demand did not emerge since domestic sales remained dull in Vietnam. Two importers from Haiphong could meet its demand with term cargoes for the time being and had no interest in spot purchase.

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