CFR Far East

In the CFR Far East market last week, prices were down on strong selling interest. The Rim Asia Index was at $655.25/mt for propane and $646.25/mt for butane as of Sep 5, down $18.75/mt and $17.75/mt from Aug 30. The number of sellers for pure propane cargoes for October delivery was increasing last week and the market was pushed down. According to sources, most traders trying to cover their short positions secured their supply and talks were mainly shifting to cargoes for second-half October delivery. For butane, supply/demand was tighter than that for propane cargoes. Demand for 44,000mt 50:50 cargoes from India or Southeast Asia was robust and Middle Eastern cargoes might not be supplied to the Far East. This was cited as a bullish factor.

FOB Middle East

The October CP was forecast at about $604/mt for propane and about $594/mt for butane. For October loading, demand from Indian importers was strong. Bharat Petroleum Corporation awarded a total of three cargoes in its buy tender closed on Sep 3 with validity until Sep 5. Indian Oil Corporation (IOC) closed a buy tender on Sep 6 with validity through the same day for one 45,000mt 50:50 per month for October to December loading. Results were as yet unclear.

Asia Pressurized Market

On an FOB South China basis, buying interest was not strong. Only buying ideas for September loading were heard at a premium in the $50's/mt to the September. On the other hand, some sellers had room for spot sale and offers were heard at a premium in the mid $60's/mt to the September CP. In Southeast Asia, spot supply appeared to be limited and active sellers were not seen.