CFR Far East

　In the CFR Far East market last week, propane prices weakened owing to retreating demand. The Rim Asia Index was at $642.50/mt for propane as of Aug 8, down $4.75/mt from Aug 2 while that for butane increased $5.25/mt to $632.50/mt. As the spread between propane and butane prices on the expected September CP narrowed to $10/mt, butane prices were pulled up. For pure propane cargoes, buying interest from traders was robust, but the number of buyers was gradually decreasing. In the market for first-half September delivery, Trafigura purchased a 23,000mt propane cargo at a premium of $7/mt to September CFR Far East quotations (equivalent to $639/mt or a premium of $46/mt to the September CP as of Aug 8) from SK Gas. One European trader that had looked for a similar cargo in the spot market was seen to have covered its demand. For butane, one importer from Taiwan and one petrochemical company in South Korea moved on spot purchase for September delivery through buy tenders.

FOB Middle East

　The September CP was forecast at about $592/mt for propane and about $582/mt for butane. For September loading, spot discussions lacked vibrancy. Most Middle East producers were inactive in spot sale at present. Under such circumstances, both buyers and sellers adopted a wait-and-see stance and refrained from engaging in talks. On the other hand, owing to weakness in the freight market, some sources reckoned that discussion levels for 44,000mt 50:50 cargoes for September loading were at a premium of $10/mt to the September CP.

Asia Pressurized Market

　On an FOB South China basis, spot availability increased and the market softened. Owing to sluggish domestic sales in South China, sellers considered exporting pressurized cargoes. Discussion levels for August loading were seen to be at a premium in the mid $60's/mt or the high $60's/mt to the August CP. In Southeast Asia, spot supply appeared to be limited and active sellers were not seen.