CFR Far East

The CFR Far East market rose last week due to increasing demand and rising crude prices. Rim Asia Index for propane and butane as of Aug 20 was at $376.25 per metric tons (/mt), up $17.75/mt and $22.75/mt respectively from Aug 14. Several traders were keen to cover their short-positions. Further, some Far East importers would ponder buying cargoes for September delivery, depending on their inventory levels. On the supply side, one European trader and one Chinese trader seemed to hold 23,000mt propane cargoes for second-half September delivery. Apart from that, one Australian player apparently bought a 23,000mt propane cargo for second-half September delivery at a discount of $10/mt to the low $10's/mt to September CFR Far East quotations on Tuesday.

FOB Middle East

The expected September CP was slightly revised down to about $365/mt for propane and about $345/mt for butane due to ample supply. One European trader apparently won a sell tender issued by Kuwait Petroleum Corp (KPC) at a discount in the mid-high $20's/mt to the September CP. Through the tender that had closed on Tuesday with bids valid on the same day, KPC was trying to sell a 44,000mt 50:50 cargo to be loaded from Mina Al Ahmadi on Sep 19-20. On the demand side, Indian importers apparently felt that they could cover demand with term cargoes and inventories on hand for the time being and did not move on spot purchase for September loading. Apart from that, on the acceptance for September loading released by Saudi Aramco, there seemed to be advancements of two to seven days and deferments of one to three days on some term cargoes.

Asia Pressurized Market

For FOB South China, discussion levels for September loading were heard at a premium of $35-38/mt to the September CP. Although details were unknown, some cargoes seemed to have been traded at this level last week. Regarding FOB Southeast Asia, active sellers were hardly seen in the market. Only a Thai supplier with a floating storage offshore Indonesia offered cargoes ex-Nipah at a premium in the low $40's/mt to the September CP.

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