CFR Far East

　 In the CFR Far East market last week, prices for Japan delivery softened along with slack supply/demand. As of Jul 31, the Japan Index for propane and butane moved down by $0.50/mt and $10.50/mt from Jul 25 to $515.75/mt and $485.75/mt respectively. Chinese players focused on procuring cargoes of non-US origin and sellers having cargoes of US-origin were trying to sell in the CFR Japan market. Some Far East importers were keen on spot purchse for cargoes for September delivery, but they did not rush into entering discussions owing to ample available cargoes. Prices for China delivery softened due to the August CP having been set lower than market expectations. The China Index fell by $0.75/mt to $532.63/mt for propane and by $1.00/mt to $497.00/mt for butane. Several Chinese players were looking for butane cargoes. One petrochemical company in East China was reported to have bought a butane cargo for September delivery at a premium in the $20's/mt to the CP.

　

FOB Middle East

　 Discussions for 44,000mt 50:50 cargoes for September loading increased to a discount of $25/mt to the September CP due to heightening buying interest. However, many sellers having 44,000mt 50:50 cargoes were seen. Several sellers including one North Sea gas producer and one South Korean importer could sell similar cargoes, according to sources. On the other hand, Saudi Aramco set the August CP at $520/mt for propane and $290/mt for butane on Jul 31. Propane prices were similar to the level that market sources expected while the spread between propane and butane prices was larger than expectations. Nevertheless, some market sources pointed out that the spread was reasonable since supply/demand for cargoes containing butane for Middle East loading remained slack.

　

Asia Pressurized Market

　 For Southeast Asia loading, a Chinese petrochemical company operating a refinery in Brunei had 2,500mt of LPG for Aug 12-13 loading. In the meantime, buyers were cautious about purchasing as spot prices for Southeast Asia loading was relatively high for them. A major Malaysian supplier also had room to sell cargoes for August loading. This company received inquiries from buyers and considered selling. Some sources mentioned that discussions for Malaysian loading would be conducted at a premium in the $30's to the August CP.