CFR Far East

The CFR Far East market fell last week owing to slack supply/demand. Rim Asia Index for propane and butane as of Aug 27 was at $374.00 per metric tons (/mt) and 376.50/mt, down $5.00/mt and $2.50/mt respectively from Aug 21. While there were concerns about delays in cargoes for second-half September delivery to the Far East due to hurricanes in the USGC, supply/demand for second-half September delivery was not tight due to weak buying interest. Under this situation, one Japanese trader bought a 23,000mt propane cargo for second-half September delivery at a discount of around $10/mt to the September CP. For first-half October delivery, one European trader seemed to have purchased a 23,000mt propane cargo at a discount of $3-4/mt to September CFR Far East quotations.

FOB Middle East

The expected September CP was revised up to about $373/mt for propane and about $362/mt for butane due to increasing crude prices. Middle East producers in Qatar, Kuwait and Abu Dhabi seemed to have enough inventories to sell spot cargoes for September loading. Moreover, two Chinese importers apparently had room to sell mixed propane/butane cargoes for second-half September loading as well. On the demand side, some traders holding term supply commitments to India and Indonesia were expected to have potential spot demand for 44,000mt 50:50 cargoes for September loading. Apart from that, one European Major was seen to have already resold a 44,000mt 50:50 cargo for second-half September loading.

Asia Pressurized Market

For FOB South China, several refrigerated cargo importers had room to sell spot cargoes for September loading and offers were heard at a premium in the high $30's/mt to the low $40's/mt to the September CP. Meanwhile, most buyers seemed to be waiting for the release of the September CP on Aug 31. Firm bids were not heard. Regarding CFR Vietnam, although spot demand did not currently appear for September delivery to Vietnam, there were views that Vietnamese importers might move to buy spot cargoes in the near future depending on inventories.

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