CFR Far East

In the CFR Far East market last week, prices for Japan and China delivery strengthened along with tight supply/demand. As of Aug 21, the Japan Index for propane and butane moved up by $7.00/mt and $17.75/mt respectively from the previous week to $534.00/mt. The China Index advanced by $13.50/mt to $578.00/mt for propane and by $33.50/mt to $568.00/mt for butane. The spread between propane and butane prices on the CP forecast shrank and available butane cargoes were limited in the CFR Far East market. Thus, a rise in butane prices was larger than that for propane. An operator of a propane dehydrogenation (PDH) plant in East China bought two 23,000mt propane cargoes of US-origin at a discount in the mid-single digits to September CFR Far East quotations (equivalent to $522/mt or a premium of $6/mt to the September CP). Supply/demand of cargoes of non-US origin that Chinese players wanted to procure was tight and spot prices were rising. Thus, more buyers were pondering purchasing cargoes of US-origin in China. The situation caused tight perceptions of supply/demand of propane in the CFR Japan market as well.

FOB Middle East

Discussions for 44,000mt 50:50 cargoes for September loading increased by $10/mt from last week to a discount of $10-20/mt to the September CP. As buying interest for cargoes containing butane was said to be firm in the Far East, demand for even-split cargoes for Middle East loading was heightening. Spot demand for a 44,000mt 50:50 cargo was observed from Indonesia and a Middle Eastern trader affiliated to Saudi Aramco was reported to have procured a similar cargo for September loading at a discount in the mid $10's/mt to the September CP from one British Major. Qatar Energy seemed to have sold a 44,000mt 75:25 cargo for Sep 25-28 loading at a discount in the mid $20's/mt to the September CP, but the buyer was unclear.

Asia Pressurized Market

For South China loading, a major Vietnamese supplier was said to have previously bought one to two cargoes for August loading from South China. Meanwhile, the supplier was said to have been actively buying cargoes from Malaysia. Sources reckoned that the Vietnamese supplier had procured many cargoes loading August from Malaysia. In Vietnam, some importer requested its supplier for additional term quantity for September delivery. This was because the October CP was expected to be higher than the September CP.