CFR Far East

In the CFR Far East market last week, prices went down owing to increasing supply. The Rim Asia Index was at $645.00/mt for propane and $630.00/mt for butane as of Jul 11, down $8.50/mt from Jul 5. As the arrival of US cargoes in the Far East was delayed due to a hurricane, the number of sellers for first-half August delivery seemed to be declining. Meanwhile, more sellers were trying to offer their cargoes in the market for second-half August delivery. Regarding discussions of 23,000mt propane cargoes for second-half August delivery, bids and offers were reported at a premium of about $5/mt to August CFR Far East quotations (equivalent to $640/mt or a premium of $56/mt to the August CP). In the CFR China market, an East China petrochemical company was said to have recently bought a 46,000mt propane cargo for first-half August delivery

FOB Middle East

The August CP was expected to be at $585-590/mt for propane and $570-575/mt for butane. For August loading, a 44,000mt 50:50 cargo was traded at flat or a small premium to the August CP early last week. After the deal, several players including a British Major and a Japanese importer seemed to have room to sell 44,000mt 50:50 cargoes. Selling ideas were heard at a low single digit premium to the August CP. As the number of sellers seemed to be higher than the number of buyers, some sources reckoned that the market might come under downward pressure going forward.

Asia Pressurized Market

On an FOB South China basis, some buyers seemed to be looking for spot cargoes for July loading. On the other hand, although some Chinese importers appeared to have room for spot sale, not that many sellers were seen in the market. Discussion levels for July loading were seen to be at a premium of about $70/mt to the July CP. In Southeast Asia, spot supply appeared to be tight and active sellers did not emerge.