CFR Far East

In the CFR Far East market last week, prices slightly gained due to firm crude oil prices. The Rim Asia Index was at $682.25/mt for propane and $703.25/mt for butane as of Nov 22, up $2.00/mt and $7.00/mt respectively from Nov 17. Sources, however, pointed out that supply/demand was still slack since there were many sellers in the spot market. With the spread between propane and butane prices on the expected CP widening, butane prices went up more sharply than propane prices. Available US-origin cargoes were seen to be plentiful and several sellers could offer pure propane cargoes. Meanwhile, demand from Chinese players was weak. One Canadian supplier was said to have sold two 23,000mt propane cargoes for second-half December delivery to two Japanese importers each at a discount of $10-15/mt to December CFR Far East quotations. The supplier had a 46,000mt propane cargo ex-US Ferndale.

FOB Middle East

The December CP was expected at around $600/mt for propane and around $615/mt for butane. Since demand for pure propane cargoes from the Middle East was weaker than that for cargoes containing butane, there were views that the butane/propane spread in the expected December CP should widen to $15/mt. India's Bharat Petroleum Corporation Limited (BPCL) had bought a 45,000mt 50:50 cargo for December loading at a premium in the mid-high single digits to the December CP through a buy tender that had closed on Nov 21 with offers valid until Nov 23. According to sources, there were still buyers for 44,000mt 50:50 cargoes for December loading. Further, as some Middle East producers might undergo maintenance from January, supply/demand was perceived to be tight.

Asia Pressurized Market

On an FOB South China basis, some sellers considered spot sale. Offers for spot cargoes loading December were heard at a premium of $70/mt and above to the December CP. In Southeast Asia, several sellers were observed. A Thai refinery was conducting a sell tender for two cargoes loading early December and mid-December. In addition, a Malaysian petrochemical maker was offering four cargoes loading Nov 24 onwards via a sell tender.