CFR Far East

The CFR Far East market lost last week due to slack supply/demand. Rim Asia Index for propane and butane as of Jul 30 was at $360.25 per metric tons (/mt) and $340.25/mt, down $6.50/mt and $21.50/mt respectively from Jul 22. One European trader seemed to be able to sell a 23,000mt propane cargo for second-half August delivery. Some sellers other than the European trader were also interested in selling spot cargoes ex-Middle East of 44,000mt, according to sources. Nevertheless, buying interest was dull. As for September delivery, several sellers apparently moved to sell pure propane while only some buyers trying to cover their short-positions were seen in the market.　

FOB Middle East

The August CP was set at $365/mt for propane and $345/mt for butane. A sell tender issued by Kuwait Petroleum Corp (KPC) on an FOB basis had been awarded at a discount of slightly above $20/mt to the September CP. Through the tender that had closed on Jul 28 at with bids valid until the same day, KPC was trying to sell a 44,000mt 75:25 cargo to be loaded from Mina Al Ahmadi on Aug 29-30. One Qatari producer had apparently sold a 44,000mt 50:50 cargo for Aug 16-17 loading at a discount of $30-40/mt to the August CP on Jul 21. Moreover, similar to August loading, Middle East gas producers were expected to have room to sell cargoes for September loading. Due to slack supply/demand, the expected September CP was revised down to about $347/mt for propane and about $327/mt for butane.

Asia Pressurized Market

For FOB South China, some refrigerated cargo importers with high inventories could apparently sell cargoes for August loading at a premium in the high $20's/mt to the August CP. Meanwhile, buyers were not observed in the market. As for CFR Vietnam, spot demand did not emerge yet. In Vietnam, domestic demand showed no signs of recovery. Moreover, there were concerns that LPG demand might decline further as COVID-19 was recently spreading again.　

CFR Far East

The CFR Far East market rebounded last week due to rising crude prices. Rim Asia Index for propane and butane as of Aug 6 was at $368.00 per metric tons (/mt) and $348.00/mt respectively, up $14.75/mt from Jul 31. Nevertheless, supply was not tight in the CFR Far East market. Some sellers deferred their sales for second-half August delivery to early September onwards. Although spot freights for Middle East-Far East were at $60/mt or above, 46,000mt propane cargoes for second-half September delivery were traded at a small discount level to the September CP, according to sources.

FOB Middle East

The expected September CP was revised up to about $370/mt for propane and about $350/mt for butane owing to rising crude prices. Two Middle East producers were interested in spot sales and supply of cargoes ex-Middle East was ample. Among them, one Qatari producer had apparently sold a 46,000mt propane cargo for early September loading to one European trader on Wednesday. Discussion levels for first-half September loading from the Middle East were heard at a discount of $30-40/mt to the September CP.

Asia Pressurized Market

For FOB South China, talks for second-half August loading were muted with few active buyers and sellers. Meanwhile, some sellers seemed to ponder selling cargoes for first-half September loading at a premium in the low $40's/mt to the September CP. Buying interest, however, was weak. Regarding CFR Vietnam, spot demand was not seen in the market. Due to COVID-19 spreading again in Vietnam, domestic demand was likely to drop.

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