CFR Far East

In the CFR Far East market last week, prices went down due to an increase in supply. The Rim Asia Index for propane and butane was at $691.50/mt and $696.50/mt respectively as of Oct 10, down $10.50/mt from Oct 4. Sellers of pure propane cargoes for second-half November delivery increased in the market. A South Korean importer or European traders were able to sell 23,000mt propane cargoes. For China delivery, four or five sellers participated in a buy tender conducted by an operator of propane dehydrogenation (PDH) in South China. An importer in Japan was reported to have won. In the US, a supplier declared Force Majeure and delays for exports were expected. Nevertheless, supply to Far East was not tight as of now.

FOB Middle East

The November CP was forecast at about $640/mt for propane and about $635/mt for butane. Last week, a 44,000mt 50:50 cargo for November loading was apparently traded at a premium in the low $20's/mt to the November CP. Sources reckoned that discussion levels for similar levels were still at this level at present. However, spot demand from Indian importers did not emerge while Middle East producers were not moving on spot sale. As a result, talks were subdued. One Indian importer was said to be checking supply of cargoes of non-Middle Eastern origin.

Asia Pressurized Market

On an FOB South China basis, buyers looking for cargoes for loading at the end of October were observed. A major supplier in Vietnam was reportedly looking for spot cargoes. On the other hand, active sellers were said to be limited. An importer in South China had room to sell spot cargoes for loading in October but was said to focus on term supply. Another Chinese importer remained its offers at a premium in the high $60's/mt to the October CP. In Southeast Asia, Isla in the Philippines was carrying out a buy term tender for 2025 closing on Oct 14. The company was seeking a total of 50,000-180,000mt of cargoes for delivery.