CFR Far East

In the CFR Far East market last week, propane prices gained in the wake of heightening buying interest while butane prices were down on slack supply/demand. The Rim Asia Index was at $660.75/mt for propane as of Aug 29, up $5.50/mt from Aug 23 while that for butane was at $650.75/mt, down $4.50/mt. Early last week, traders trying to cover their short positions and Chinese players were seeking 46,000mt propane cargoes and several cargoes were traded. After that, market sources viewed that the number of sellers was decreasing and cited it as a bullish factor, but available cargoes were surfaced later last week. Several sellers including one South Korean importer were offering pure propane cargoes for second-half October delivery. For butane, demand from petrochemical companies was lackluster while sellers having US-origin butane cargoes were seen.

FOB Middle East

The September CP was released at $605/mt for propane and at $595/mt for butane, up $15/mt and $25/mt respectively from the previous month. Although the September CP was released at almost the same level as market expectations, it was viewed that the September CP was above the August CP owing to tightness in supply/demand for Middle East loading. Regarding October loading, sellers already appeared in the market. Selling ideas for 44,000mt 50:50 cargoes were reported at a premium in the $10's/mt to the October CP. Meanwhile, Middle Eastern gas producers did not release acceptances at the moment, and supply situation for Middle East loading was unclear so far.

Asia Pressurized Market

On an FOB South China basis, a Vietnamese supplier was said to be looking for several cargoes for September loading. Buying ideas were heard at a premium in the $50's/mt to the September CP. As for availability, some sellers apparently had room for spot sale. Possible discussion levels were seen to be a premium in the low $60's/mt to the September CP. In Southeast Asia, importers in the Philippines were inactive in spot purchase at the moment as their supply/demand appeared to be balanced.