CFR Far East

The CFR Far East market was strong last week due to firm buying interest and an upward revision of the expected November CP. Rim Asia Index for propane and butane as of Oct 15 was at $466.50 per metric tons (/mt) and $486.50/mt respectively, up $30.75/mt from Oct 9. Toward the peak demand winter season, the number of buyers was gradually increasing. Two pure propane cargoes for November delivery to Japan were traded. In the CFR China market, pure propane and even-split cargoes for second-half November delivery were traded as well.

FOB Middle East

The November CP forecast was revised up to about $435/mt for propane and about $445/mt for butane due to robust demand. One European trader apparently bought a pure butane cargo for end-October loading from Kuwait while one importer from East China purchased a pure propane cargo for mid-November loading from Qatar. Moreover, a South Caucasus oil company was said to have bought a 44,000mt 50:50 cargo for November loading. For delivery to India, spot demand for 44,000mt 50:50 cargoes for December delivery emerged as well. Buying interest for FOB Middle East cargoes was firm in general.

Asia Pressurized Market

On FOB South China, one refrigerated cargo importer offered cargoes for first-half November loading at a premium in the high $40's/mt to the November CP. There were some bullish factors such as a considerable rise in domestic wholesale prices in China and a recent increase in procurement costs of refrigerated cargoes. Regarding CFR Vietnam, active buyers were not seen yet. Nevertheless, domestic demand seemed to be recovering in Vietnam. Under this situation, one importer from Haiphong slightly increased term cargoes for October delivery.

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