CFR Far East

In the CFR Far East market, prices for delivery to Japan and China declined due to ample supply. As of Jul 3, the Japan Index moved down by $12.75/mt from Jun 26 to $525.25/mt for propane and $495.25/mt for butane. The China Index for propane fell by $16.00/mt to $550.38/mt and while that for butane decreased by $6.00/mt to $524.50/mt. Demand for butane was firm and a decline in prices was limited. There were many sellers for August delivery. 23,000mt propane cargoes for first-half August delivery to Japan were offered at a discount of $8/mt to August CFR Far East quotations (equivalent to $531/mt or a discount of $29/mt to the August CP). In the CFR China market, one importer in Taiwan bought two 23,000mt propane cargoes for delivery to its propane dehydrogenation (PDH) plant in Ningbo at $560-570/mt. These cargoes were non US-origin and for prompt delivery.

FOB Middle East

Discussions for 44,000mt 50:50 cargoes for August loading were held at a discount in the $30's/mt to the August CP. Several players having similar cargoes while buying interest was thin. Thus, discount to the CP for August loading deepened. Indian Oil Corporation (IOC) issued a buy tender for a 45,000mt 50:50 cargo for August loading or delivery. According to several sources, it was awarded at a premium in the mid $20's/mt to the August CP on a CFR basis. Considering the freight costs from the Middle East to India, the level was equivalent to a discount in the $30's/mt to the August CP on an FOB Middle East basis. On the other hand, KPC closed a sell tender for an even-split cargo for July loading last Friday. Market sources believed that the discount to the CP might be larger than that for August loading cargoes. The July CP was set at $575/mt for propane and $545/mt for butane.

Asia Pressurized Market

A Vietnamese importer looked for cargoes for July loading from South China. The Market values for South China loading at present were at a rate equivalent to a premium of $85/mt to July CP on a CFR Haiphong basis. Some sources mentioned that this importer felt the price was low and tried to buy spot cargoes on an FOB South China basis. For term discussions, a major Vietnam supplier declined its term prices for players in Haiphong by a premium of several dollars to the CP. Players in Haiphong considered decreasing term prices for traders. Apart from this, operators of Ca Mau gas and Dinh Co gas plants issued sell tenders closing in mid-July for August 2025 to January 2026.