CFR Far East

The CFR Far East market plunged owing to weak crude prices and perceptions of ample supply of pure propane. A 23,000mt propane cargo for second-half September delivery was apparently traded at a premium of $1/mt to September CFR Far East quotations. For delivery to Korea, a buy tender for a 23,000mt butane cargo for first-half September delivery was awarded at a premium in the high $10's/mt to August or September naphtha quotations, according to sources. Rim Asia Index for propane and butane was at $687.00/mt and $692.00/mt respectively as of Aug 5, down $21.75/mt from Jul 30.

FOB Middle East

The expected September CP was revised down to about $655/mt for propane and $650/mt for butane. One Qatari producer was carrying out a sell tender for a 45,000mt propane cargo for early September loading. With ample supply of pure propane cargo for second-half September delivery to the Far East, there were views that the cargo might be awarded at a discount level to the September CP. Regarding even-split cargoes, sellers took a bullish stance due to strong demand from India. Some traders and importers apparently offered 44,000mt 50:50 cargoes at a high single digit premium to the September CP.

Asia Pressurized Market

In the FOB South China market, due to weak domestic sales along with high temperatures, some refrigerated cargo importers were interested in spot sales. Offers were reported at a premium in the high $30's/mt to the August CP. On the other hand, with spot cargoes available in Southeast Asia, a major consumption area, buying interest was weak. For Southeast Asia loading, one importer in Thai apparently offered Aug loading cargoes on an FOB basis. Apart from that, several importers in Southeast Asia such as Malaysia and Brunei were moving on spot sales for second-half August delivery to the Philippines.