CFR Far East

In the CFR Far East market last week, prices went up owing to strengthening buying interest. The Rim Asia Index was at $656.50/mt for propane and $641.50/mt for butane as of Jul 4, up $5.00/mt and $25.00/mt from Jun 28. A rise in butane prices was larger than that for propane since supply/demand was seen to be tight. Traders were actively seeking spot cargoes for first-half August delivery and this pushed up the market. In China, one petrochemical company and Formosa Chemical Industries Ningbo (FIC) operating a propane dehydrogenation (PDH) plant in Ningbo moved on spot purchase for early August. Butane supply was seen to be few while Far East importers were keen on buying cargoes containing butane. Thus, supply/demand fundamentals of butane cargoes were tighter than before.

FOB Middle East

　The August CP was forecast at about $589/mt for propane and about $574/mt for butane. For August loading, both buyers and sellers were seen. For 44,000mt 50:50 cargoes, buyers considered purchasing at a discount to the August CP while sellers hoped to sell at a premium to the August CP. Under such circumstances, sources reckoned that discussion levels for 44,000mt 50:50 cargoes for August loading were at around flat to the August CP.

Asia Pressurized Market

On an FOB South China basis, buying interest was firm and the market moved. Discussion levels for July loading were heard at a premium in the high $60's/mt to $70's/mt to the July CP. In Southeast Asia, a spot cargo seemed to be available from Thailand. A trader seemed to be showing selling interest for such a cargo for July delivery to the Philippines.