CFR Far East

In the CFR Far East market, propane prices fell due to slack supply/demand. Meanwhile, supply/demand for butane was tight. Rim Asia Index for propane as of Sep 3 was at $362.75 per metric tons (/mt), down $11.25/mt from Aug 28 while that for butane was at $377.75/mt, up $1.25/mt. Although several sellers were expected to have room to sell pure propane, active buyers were hardly observed in the market. A 23,000mt propane cargo for second-half September delivery was apparently traded at a discount of $30/mt to September CFR Far East quotations. Moreover, a time-swap deal seemed to be done whereby one player released a 23,000mt propane cargo for first-half October delivery and received a 23,000mt propane cargo for second-half October delivery. The player receiving a 23,000mt propane cargo for second-half October delivery paid around $8/mt to the counterparty, according to sources. Regarding cargoes containing butane, two Japanese importers were seen to ponder buying October delivery.

FOB Middle East

The September CP was set at $365/mt for propane and $355/mt for butane. Further, the expected October CP was revised down to about $365/mt for propane and butane due to ample supply. Qatar Petroleum for the Sale of Petroleum Products Company Limited (QPSPP) issued a sell tender that would close at 12:00 Doha time on Sep 8 with bids valid until 17:00 hours on Sep 9. Offered in the tender was an Oct 6-7 loading 45,000mt propane cargo. QPSPP could accept bids on a CFR basis as well. A sell tender issued by Kuwait Petroleum Corp (KPC) was apparently awarded at a discount in the mid-high $10's/mt to the October CP or a discount of $18/mt to the October CP. Through the tender that had closed on Wednesday with bids valid on the same day, KPC was trying to sell a 44,000mt 50:50 cargo to be loaded on Sep 27-28. On the demand side, some players holding term supply commitment to India seemed to have demand for even-split cargoes for October loading

Asia Pressurized Market

For FOB South China, some sellers seemed to hold inventories on hand. Some refrigerated cargo importers apparently offered cargoes for mid- September loading at a premium in the high $30's/mt to the September CP. Nevertheless, no active buyers were seen in the market despite bullish sentiments heightening that the October CP might be above the September CP. Regarding CFR Vietnam, spot demand did not appear for September delivery to Vietnam yet. Nevertheless, since the COVID-19 outbreak was gradually fading in Vietnam, demand was expected to increase going forward.

Sample Report