CFR Far East　　　

The CFR Far East market rose last week due to tight supply/demand. The Rim Asia Index declined to $470.00/mt for propane and $485.00/mt for butane as of Nov 8, down $10.00/mt. Some trader had moved to buy pure propane cargoes ex-US for second-half December delivery in order to cover their short-positions in early last week. while several cargoes had been traded and the number of sellers was limited. With tight supply/demand, buyers raise their bids in pursuit of sellers. Moreover, due to congestion in Panama Canal in the middle of last week, perceptions of tight supply occurred due to views that the number of sellers might be lower than initial anticipations. Besides that, increasing spot freight rates were also cited as a bullish factor. Under this situation, offers for pure propane cargoes ex-US were raised to a level equivalent to a premium of $50/mt to the December CP. On the other hand, as for cargoes containing butane, one seller for an even-split cargo for second-half December delivery emerged. Since butane demand from China was dull, there were views that discussion levels for butane cargoes might fall to the same level as propane as the premium to the December CP.　

FOB Middle East　　

Due to tight supply/demand in the Far East market, the expected December CP was revised down to around $415/mt for propane and around $430/mt for butane. One player that had a term contract for delivery to Indonesia showed buying interest for a cargo on an FOB Middle East basis and demand was firm. Under this situation, a 44,000mt 50:50 cargo for December loading was reportedly traded at a small premium to the December CP between European traders. Further, one Far East importer was said to have bought a 44,000mt 50:50 cargo at a premium of $3/mt to the December CP from Abu Dhabi producer in early this month.　

Asia Pressurized Market　

In the FOB South China market, one refrigerated cargo importer with a terminal in Dongguan could sell second-half November loading at a premium in the low $60's/mt to the November CP. Buyers, however, were not interested in purchasing at this level owing to forecasts that the December CP might be below the November CP. Regarding CFR Vietnam, one importer from Haiphong had room to buy several-hundred tons for December delivery as its domestic sales were likely to be above the current level. As a result, the importer requested its term supplier to sell at a premium in the low $90's/mt to the December CP, the same level of term cargoes.　

Sample Report