CFR Far East

In the CFR Far East market last week, propane prices fell due to slack supply/demand while butane prices rose owing to a recovery in buying interest. Rim Asia Index for propane as of Aug 13 was at $362.75 per metric tons (/mt), down $8.00/mt from Aug 7 while that for butane was at $352.75/mt, up $2.00/mt. For 23,000mt propane cargoes for first-half September delivery, there were many sellers while buying interest was dull. Only one Korean player pondered buying. For second-half September delivery, a 23,000mt propane cargo was traded at a discount of $15/mt to September CFR Far East quotations on Aug 12 while a 46,000mt propane cargo was traded at a discount of $18/mt to September CFR Far East quotations on Aug 11. Apart from that, one Taiwanese importer bought a 22,000mt 50:50 cargo for second-half September delivery. 　

FOB Middle East

The expected September CP was slightly revised down to about $368/mt for propane and about $348/mt for butane due to slack supply/demand in the CFR Far East market. In the FOB Middle East market, some players holding term supply commitments to India and Indonesia seemed to be interested in buying 44,000mt 50:50 cargoes. Moreover, one North Sea producer was seen to have room to purchase a 44,000mt 50:50 cargo. Nevertheless, the North Sea producer contemplated a time-swap deal rather than an outright purchase. Discussion levels for similar cargoes were heard at a discount in the mid-high $20's/mt to the September CP. Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates (UAE) released the acceptance for September loading. Some cargoes were returned with advancements, according to term customers. This was because loading dates term customers had requested were concentrated in the second half of September and ADNOC had no choice but to advance acceptances.　

Asia Pressurized Market

For FOB South China, discussion levels for second-half August loading were heard at a premium of $28-38/mt to the August CP. Given rising freights rates for VLGC vessels, some sellers offered cargoes for second-half August loading at a premium in the high $30's/mt through the $40's/mt to the August CP, according to sources. Regarding CFR Vietnam, spot demand remained weak. Due to COVID-19 spreading again in Vietnam, domestic sales were falling in Vietnam.　

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