CFR Far East

In the CFR Far East market last week, prices went down due to weak demand. The Rim Asia Index was at $643.75/mt for propane and $628.75/mt for butane as of Jul 18, down $5.75/mt from Jul 12. Demand from Chinese players for second-half August delivery was limited and this was cited as a bearish factor. On the other hand, traders trying to cover their short positions were appearing in the spot market later last week. For butane, although one petrochemical company in South Korea and one importer from Taiwan were seeking spot cargoes, one seller had a butane-rich cargo. Supply/demand of cargoes containing butane was not seen to be tight. The cargo containing butane was sold to one Japanese importer, according to some sources.

FOB Middle East

The August CP was forecast at about $585-590/mt for propane and about $570-575/mt for butane. For August loading, discussion levels for 44,000mt 50:50 cargoes were seen to be at a mid-single digit premium to the August CP. As the August loading acceptances of all Middle East producers had been released, cargo schedules were finalized an spot discussions were less active than before. Saudi Aramco was expected to checking its term customers' recommendations for the August CP on Jul 25 and Jul 29. Regarding term supply Indian Oil Corporation was said to have purchased a total of 12 cargoes of 45,000mt 50:50 for January to December 2025 via a series of tenders on an FOB Middle East basis.

Asia Pressurized Market

On an FOB South China basis, the spot market was firm. Several buyers seemed to be looking for spot cargoes while not many sellers were seen. Discussion levels for August loading were seen to be at a premium of about $70/mt to the August CP. In Southeast Asia, spot supply was limited. Two refineries in Malaysia were not actively selling spot cargoes.