CFR Far East

　 In the CFR Far East market last week, prices for August delivery softened on perceptions of ample supply. As of Jul 18, the Japan Index moved down by $18.25/mt from Jul 11 to $515.50/mt for propane and $485.50/mt for butane. In the CFR Japan market, sellers for propane cargoes for second-half delivery rushed to sell by pulling down their offers. On Jul 15, a Turkish trader offered for 23,000mt propane at a discount of $17/mt to August CFR Far East quotations (equivalent to $524/mt or a discount of $31/mt to the August CP as of Jul 15). The company was believed to have already sold this cargo. In the CFR China market, buying interest was generated by a rapid drop in spot prices, and fresh demand from propane dehydrogenation (PDH) plants surfaced. For these PDH plants, 23,000mt propane cargoes were sold at a premium in the mid-$10's/mt to the August CP or low $560's/mt.

FOB Middle East

Discussions for 44,000mt 50:50 cargoes for August loading were down $10/mt from the previous week to a discount of $50/mt to the August CP. There were many players holding similar cargoes while buying interest from India or Southeast Asian importers was lackluster. As a result, supply/demand eased. A Chinese importer holding an even-split cargo was said to have sold it to an European trader at a discount of $50/mt to the August CP. Further, a Japanese importer seemed to have sold at a discount in the $50's/mt to the August CP. For talks to India delivery, Indian Oil Corporation (IOC) newly issued a buy tender that closed on Jul 18 with the validity set on the same day to 44,000mt 50:50 cargoes for January and September 2026 loading. Previously, IOC conducted a term tender to buy 44,000-45,000mt 50:50 cargoes per month for Jan-Dec 2026.

Asia Pressurized Market

Two refrigerated cargo importers seem to have room to sell pressurized cargoes for August loading. These sellers, however, kept their offers while buyers' ideas remained at a premium in the $20's/mt to the August CP, and they did not reach the deals apparently. Sources reckoned that possible deal levels for South China loading were still at a premium in the $30's/mt to the August CP. For term discussions, State Trading Company (STC) in Mauritius appeared to have issued a buy tender closing in early August for 9,000-12,000mt per month for the period of November 2025 to October 2026. Ca Mau and Dinh Co gas plants were said to have awarded their term sell tenders closed in mid-July for the period of August 2025 to January 2026.