CFR Far East

In the CFR Far East market, prices for delivery to Japan and China declined due to weak crude oil prices and an increase in sellers. As of Jun 26, the Japan Index moved down by $52.00/mt from Jun 20 to $536.00/mt for propane and $506.00/mt for butane. The China Index for propane fell by $42.75/mt to $567.63/mt and while that for butane decreased by $20.50/mt to $534.50/mt. In the CFR Japan market, sellers having cargoes of US-origin for second-half July through August delivery emerged. In China, several sellers actively offered cargoes of non-US origin such as Australia or West Africa loading. Under this situation, a 33,000mt propane cargo for second-half July delivery was reportedly traded at a premium in the high $10's/mt to July CFR Far East quotations (equivalent to a discount of $38/mt to the July CP as of Jun 26).

FOB Middle East

For July loading, discussions levels for 44,000mt 50:50 cargoes were unchanged at a discount of $40/mt to the July CP. Tensions in the Middle East suddenly eased after Iran and Israel agreed to a cease-fire. However, progress in spot discussions for Middle Eastern cargoes kept sluggish as some ship owners remained reluctant to load cargoes from the Middle East. On the other hand, Far East importers expected that the July CP might be set at $590/mt for propane and $560/mt for butane, lower than the previous month since supply/demand for July loading was slack.

Asia Pressurized Market

A South China supplier seemed to hold spot talks for loading in July with some buyers. Discussions were apparently being held at a premium in the mid $30's/mt to the July CP. In the meantime, some sources pointed out that buyers were cautious about high prices as the July CP forecast was revised up, and discussion levels would possibly decline going forward. For delivery to Southeast Asia, some traders were interested in spot sales for delivery to the Philippines. These traders were reportedly offering cargoes for delivery in July and August at a premium in the low $90's/mt to the CP. An importer in the Philippines could meet its demand only with term cargoes and it did not consider buying the spot cargoes.