CFR Far East　　

The CFR Far East market gained last week due to firm buying interest. The Rim Asia Index rose to $465.25/mt for propane and $495.50/mt for butane as of Oct 31, up $6.25/mt and $11.50/mt respectively from Oct 25. In the CFR Japan market early last week, some traders trying to cover their short-positions were keen on buying pure propane cargoes ex-US. Moreover, spot demand for even-split cargoes of non-US origin emerged. Last Tuesday, a 46,000mt 50:50 cargo for Nov 29-30 delivery to Chiba was traded at a premium of $77/mt to the November CP. Since the premium level was higher than freight rates for Middle East-Far East on the same day by about $5/mt, buying interest from the trader was robust. On propane for December delivery, as the spread between CFR Far East prices and Mont Belvieu prices were wide apart, players with cargoes for November loading from the USGC on hand apparently saw a merit to sell in the CFR Far East market for December delivery. As a result, supply of pure propane cargoes ex-US for December delivery was expected to increase.

FOB Middle East　

The November CP was set at $430/mt for propane and $445/mt for butane. The December CP was expected to be at $409/mt for propane and $424/mt for butane. Prices for December loading increased due to anticipation of growing demand early last week. One importer from East China seemed to have bought via a sell tender issued by Qatar Petroleum for the Sale of Petroleum Products Company Limited (QPSPP) a 45,000mt propane cargo for Dec 1-28 loading at a premium of low single digit to the December CP. Prices for December loading , however, declined late last week owing to rising freight rates, weak demand from India and forecast that supply of cargoes of Iranian origin might increase.

Asia Pressurized Market　

In the FOB South China market, discussion levels for November loading were at a premium of $58-63/mt to the November CP. With bearish sentiments that the December CP might be below the November CP due to falling crude prices, buyers did not rush into spot purchase. For delivery to Southeast Asia, one player in the Philippines was said to be recently supplying pressurized cargoes produced by a refinery in Brunei to the Philippines, Vietnam and Bangladesh. Hengyi Petrochemical is operating the refinery (160,000 bbl/day) in Pulau Muara Besar.　

Sample Report