CFR Far East

In the CFR Far East market, prices for delivery to Japan and China moved up along with strong crude oil prices and firm demand. As of Jun 19, the Japan Index moved up by $8.00/mt from Jun 13 to $585.75/mt for propane and $555.75/mt for butane. The China Index for propane rose by $11.38/mt to $606.63/mt and while that for butane increased by $11.50/mt to $550.00/mt. Traders trying to cover their short positions for second-half July through first-half August were observed in the spot market. On the other hand, one East China importer and one South Korean importer sold their cargoes on hand. Further, there were several sellers having Australian propane cargoes in the spot market. Under this situation, sources perceived that supply/demand of propane was not tight. For butane, along with worsening situation in the Middle East, talks for cargoes of special-origin were slow to progress.

FOB Middle East

For July loading, discussion levels for 44,000mt 50:50 cargoes posted no significant change from the previous week at a discount of around $40/mt to the July CP. As available vessels for loading in the Middle East decreased along with the conflict between Israel and Iran and the increasing tensions in the Middle East, buyers found it difficult to procure cargoes for loading in the Middle East. Thus, discussions were slow to progress. In this situation, Indian Oil Corporation (IOC) issued a CFR buy tender closing Jun 24 for a 44,000mt 50:50 cargo for August delivery. Hindustan Petroleum Corporation Limited (HPCL) apparently awarded its buy tender closed on Jun 16. Some sources said that the tender was awarded on an FOB Middle East basis for July to August loading at a discount of around $40/mt or in the $50's/mt to the CP. in the meanwhile, information was also heard that the tender was awarded on a CFR basis.

Asia Pressurized Market

In South China, one refrigerated cargo importer had room to sell spot cargoes, but it did not actively offer spot cargoes due to few buyers. The market remained at a premium of $30-40/mt to the CP while sources pointed out that buyers had thin interest in taking cargoes at a premium in the $30's/mt to the CP. In the Philippines, a Thai importer with terminals in Zhuhai and Shantou and an Asian trader offered cargoes for July delivery on a CFR basis. Some importers received selling interest from them, but it did not have room to buy additional cargoes and refrained from engaging in talks. Supply/demand in the country appeared slack.