CFR Far East

In the CFR Far East market last week, prices for Japan delivery strengthened along with firm demand. As of Aug 14, the Japan Index for propane and butane moved up by $15.75/mt from Aug 8 to $527.00/mt and $517.00/mt respectively. Traders trying to cover their short positions were seen in the market and spot demand from South Korea appeared. Buying interest was heightening. The China Index advanced by $8.00/mt to $564.50/mt for propane and $534.50/mt for butane. Several Chinese players procured spot cargoes of non-US origin and supply/demand tightened. Especially, supply of butane cargoes was said to be thin. Supply from Australia decreased and this caused a supply shortage.

FOB Middle East

Discussions for 44,000mt 50:50 cargoes for September loading increased by $10/mt from last week to a discount of $25/mt to the September CP. A firmness in prices of non-US cargoes in the CFR Far East market boosted buying interest for similar cargoes from the Middle East. Information were heard that a Chinese petrochemical maker was looking for spot cargoes. Under this situation, sellers were taking a bullish stance and were apparently not interested to sell at a discount in the $20's/mt to the September CP. In addition, buying interest for even-split cargoes for October loading was seen as well. An Omani trader seemed to have purchased a cargo at a discount in the mid $20's/mt to the October CP and a Japanese importer was reportedly seeking available cargoes.

Asia Pressurized Market

From Taiwan, available cargo was appearing. One importer was trying to sell a raffinate (mixed C4) cargo via a sell tender. Meanwhile, several buyers had spot demand for Vietnam and the Philippines. These buyers had interest in taking cargoes from Malaysia and one Malaysian major supplier apparently received buying interest from them. Some buyers were trying to procure cargoes to Vietnam for August and September while others wanted to buy cargoes to the Philippines for September. Buying interest for Southeast Asia loading was heightening and some market sources perceived that the market might move up going forward.