CFR Far East

　In the CFR Far East market last week, prices declined due to slack supply/demand. The Rim Asia Index as of Nov 7 was at $636.25/mt for propane and at $641.25/mt for butane, down $8.00/mt and $18.00/mt respectively from Nov 1. Several sellers had 44,000mt 50:50 cargoes ex-US while buying interest from importers in the Far East or Southeast Asia was retreating. Supply/demand of butane was seen to be loosening and this pushed down butane prices. For propane, two Japanese importers procured spot cargoes for second-half December delivery. One importer was said to have bought a 46,000mt propane cargo at a discount of $5/mt to December CFR Far East quotations (equivalent to $630/mt or a premium of $5/mt to the December CP as of Nov 6) and another Japanese importer was reported to have purchased a 23,000mt propane cargo at a discount of $2/mt to November CFR Far East quotations (equivalent to $633/mt or a premium of $8/mt to the December CP as of Nov 6)

FOB Middle East

　 The December CP was forecast at about $625/mt for propane and about $620/mt for butane. For December loading, availability emerged. Kuwait Petroleum Corporation (KPC) closed a sell tender on Nov 7 for a 44,000mt 50:50 cargo for Dec 1-2 loading. On the other hand, there were few buyers. Only India's Bharat Petroleum Corporation Limited (BPCL) was looking for a 44,000mt 50:50 cargo for December loading via a tender. Sources pointed out that overall market sentiment had weakened.

Asia Pressurized Market

　On an FOB South China basis, sellers having November loading cargoes wanted to offer at a premium in the low-mid $60's/mt to the November CP while discussion levels were still seen to be at a premium in the high $50's/mt to the November CP. For term discussions, one South China importer concluded supply contracts for next year at a premium in the $50's/mt to the CP. Regarding delivery to Vietnam, one importer purchased spot cargoes for November delivery at a premium of around $120/mt since its domestic sales were increasing.