CFR Far East

In the CFR Far East market last week, prices went down due to an increase in supply and softening crude oil prices. The Rim Asia Index for propane and butane was at $667.00/mt and $672.00/mt respectively as of Oct 17, down $16.50/mt from Oct 11. In the market for second-half November delivery, one South Korean importer and one US Major had pure propane cargoes. Additionally, Chinese players were trying to resell their cargoes and supply was seen to be ample. For cargoes containing butane, traders having even-split cargoes ex-USGC were seen and a 44,000mt 75:25 cargo ex-Australia emerged in the market.

FOB Middle East

The November CP was forecast at about $625/mt for propane and about $620/mt for butane. Several 44,000mt 50:50 cargoe for November loading were apparently traded. A European trader was said to have bought a 44,000mt 50:50 cargo from a Far East importer or a Middle East trader affiliated to Saudi Aramco at a premium of $20/mt and above to the November CP. However, the European trader denied the deal. Another European trader also seemed to have purchased a similar cargo from the Middle East trader affiliated to Saudi Aramco.

Asia Pressurized Market

On an FOB South China basis, discussion levels dropped to a premium in the $50-60/mt to the CP. Demand was lackluster. Most players were focusing on term discussions for 2025 and active buyers were hardly observed in the spot market. In addition, some buyers were said to decrease volumes of term cargoes to take in November compared to October since the November CP was expected to be set above the October CP. In the Philippines, Isla and SPI were entering term discussions for 2025 and the results might be reported next week.