CFR Far East

In the CFR Far East market last week, prices sharply went down due to slack supply/demand. The Rim Asia Index was at $695.25/mt for propane and $711.25/mt for butane as of Nov 16, down $32.00/mt from Nov 10. Sellers having second-half December delivery were observed while buyers were hardly seen. Japanese importers had finished covering their demand for this timing. Additionally, South Korean importers were seen to be showing selling positions and had no room to buy. Under this situation, offers for 23,000mt propane cargoes dropped to a discount to December CFR Far East quotations. On the other hand, due to reductions of reservation slots for passing through the Panama Canal, the arrival timing of US-origin cargoes in the Far East was expected to be delayed. Sources, however, perceived that the impact might be bigger from January loading cargoes.

FOB Middle East

The December CP was expected at around $600/mt for propane and around $610/mt for butane. Qatar Petroleum for the Sale of Petroleum Products Company Limited (QPSPP) carried out a sell tender closing on Nov 15 and it sold a 45,000mt propane cargo for Dec 4-15 loading to one Japanese importer. Some sources believed that the awarded price might be at a discount in the low $10's/mt to the December CP. For cargoes containing butane, one Indonesian importer, Pertamina, issued a buy tender for one 44,000-45,000mt 50:50 cargo for Dec 16-20 loading.

Asia Pressurized Market

On an FOB South China basis, some sellers had room to sell spot cargoes for December loading. Offers were heard at a premium of $70/mt and above to the December CP. On the other hand, few buyers were seen. Buying interest from Vietnam and the Philippines for cargoes loading South China was thin. In Southeast Asia, one refinery in Malaysia carried out a sell tender and sold a cargo loading Nov 23-25. For delivery to Vietnam, spot demand was sluggish and firm talks were not heard.