CFR Far East

Early last week, the CFR Far East market had dropped due to weak crude prices. Nevertheless, the market slightly rebounded late week onwards in the wake of strong crude prices and recovery in buying interest. Talks for pure propane were active. Two 46,000mt propane cargoes seemed to have been traded at a discount of $1/mt to flat to the August CP. Further, one 23,000mt propane cargo for second-half August delivery was apparently traded at a premium of $3/mt to August CFR Far East quotations. In addition, a 23,000mt propane cargo for first-half September delivery was traded at a level equivalent to a premium of $30/mt to the September CP. Rim Asia Index for propane and butane was at $683.25/mt and $688.25/mt respectively as of Jul 15, up $0.87/mt from Jul 9.　

FOB Middle East

The expected August CP was revised up to about $650/mt for propane and butane. One Turkish trader seemed to have bought a 45,000mt propane cargo for first-half August loading through a sell tender issued by one Qatari producer. The price might have been at a low single discount to a low single premium to the August CP, according to some sources. Regarding even-split cargoes, several players were interested in buying. Under this situation, discussion levels for 44,000mt 50:50 cargoes were heard at a low single premium to the August CP.

Asia Pressurized Market

In the FOB South China market, offers were still heard at a premium in the high $30's/mt to the July CP. Meanwhile, buyers were not observed in the market. One South China importer procured a cargo for Southeast Asia loading in July on a DES basis. For delivery to South Asia, outbreaks of COVID-19 hit demand in Malaysia. As the government implemented lockdown, domestic demand in Malaysia was lackluster along with an economic slowdown.