CFR Far East

In the CFR Far East market last week, prices sharply declined since the number of sellers was increasing. The Rim Asia Index was at $657.50/mt for propane and $673.50/mt for butane as of Nov 30, down $20.75/mt and $25.75/mt respectively from Nov 24. With the spread between butane prices and propane prices shrinking, a fall in butane prices were bigger than propane. In the market for January delivery, traders and Far East importers such as one Japanese importer and a South Korean importers were offering 23,000mt propane cargoes. Offers for 23,000mt propane cargoes dropped to a discount of $12.28/mt to January CFR Far East quotations. With more US cargoes moving to the Far East via the Suez Canal instead of the Panama Canal, the arrival was delayed but sources pointed out that there was sufficient supply.

FOB Middle East

The December CP was set at $610/mt for propane and $620/mt for butane, unchanged from the previous month. Some sources felt that the December CP was set above market forecasts as current crude prices were firm and Saudi Aramco might continue to implement crude production cuts, leading to a decrease in LPG supply. For January loading, a Middle East trader affiliated to an Abu Dhabi producer seemed to have a 44,000mt 50:50 cargo available. With sellers observed, prices for 44,000mt 50:50 cargoes for January loading were reported to fall to a low-single digit premium to the January CP.

Asia Pressurized Market

On an FOB South China basis, some sellers received refrigerated vessels recently and had room to sell pressurized cargoes. Discussion levels for December loading were seen to be at a premium of about $60/mt to the December CP. In Southeast Asia, some importers in the Philippines were apparently looking for spot cargoes on a CFR basis for January delivery. In Vietnam, domestic demand seemed to be improving but active buyers of spot cargoes were not seen.