CFR Far East

In the CFR Far East market last week, prices for Japan delivery softened along with an increase in supply. As of Jul 24, the Japan Index moved down by $20.50/mt from Jul 18 to $515.25/mt for propane and by $12.50/mt to $495.25/mt for butane. In the CFR Japan market, sellers for second-half delivery rushed to sell and offers for 23,000mt propane cargoes decreased to a discount of $27/mt to August CFR Far East quotations (equivalent to $506/mt or a discount of $25/mt to the August CP as of Jul 24). Nevertheless, information was heard that Japanese importers were keen on buying spot cargoes as the market sharply moved down. Meanwhile, the China Index gained by $0.88/mt to $536.63/mt for propane and by $9.00/mt to $516.50/mt for butane. Several Chinese players were looking for cargoes of non-US origin and they issued a buy tender. For a propane dehydrogenation (PDH) plant in Ningbo, a 23,000mt propane cargo from Australia was traded at $550/mt.

FOB Middle East

Discussions for 44,000mt 50:50 cargoes for August loading were unchanged from the previous week at a discount of $50/mt to the August CP. Qatar Energy sold a 45,000mt 75:25 cargo and a 45,000mt 50:50 cargo for loading on Aug 23-28 via a tender that closed on Jul 24 with validity until the same day. The buyers were reported to have been a European trader and an energy company in Oman. Besides, names of a Middle East trader, another European trader and a Japanese importer were mentioned as the winners. The awarded prices were not clear but it was informed that those were at a discount in the $40's/mt and at a discount of $65-70/mt to the August CP.

Asia Pressurized Market

On an FOB South China basis, buying interest was weak and this exerted downward pressure on the market. Sources reckoned that discussion levels for August loading had fallen to a premium of $30-35/mt to the August CP. One importer from the Philippines considered spot purchase for August loading but a deal was apparently not reached as its buying ideas were lower than sellers' ideas. Regarding term discussions, a major Vietnamese supplier was said to have reduced its term price for the second half of 2025 as a premium to the CP by several dollars. The supplier seemed to have lowered its term price as a premium to the CP by $5/mt. Along with this, some traders apparently also considered reducing their term prices in order to attract buyers.