CFR Far East

In the CFR Far East market last week, prices for Japan delivery hiked on steady demand. As of Sep 11, the Japan Index for propane and butane moved up by $8.50/mt from the previous week to $547.25/mt and $557.25 /mt respectively. For Japan delivery, traders were actively seeking 23,000mt propane cargoes. Trafigura procured a 23,000mt propane cargo form MB Energy for the first half of October arrival at a discount of $8/mt to October CFR Far East quotations (equivalent to $545/mt or a discount of $4/mt to the Oct CP as of Sep 10). Information was also heard at a discount of $7.5/mt to October CFR Far East quotations. For butane, a South Korean importer was seeking a pure butane cargo for first-half October delivery via a tender. The China Index for propane and butane hiked by $2.00/mt to $600.50/mt and $580.50/mt respectively. Spot demand was expected to propane dehydrogenation (PDH) plants in South and East China.

FOB Middle East

An Indian importer carried out a buy tender for October and November loading/delivery even-split cargoes. Fresh demand appeared and the possible deal level for a 44,000nmt 50:50 cargo was said to rise to a single-digit discount to the October CP. Sellers were already taking a bullish stance and showed selling interest for a premium to the October CP. However, Indian importers planned to take cargoes from the US next year and information was heard that they would carry out a term tender soon. Further, supply from the Middle East was expected to increase. Supply/demand was possibly slackening going forward.

Asia Pressurized Market

For delivery to Southeast Asia, a deal was heard. A US Major was said to have recently bought an LPG cargo of 1,800mt on a CFR basis for early October delivery to Singapore. The seller was believed to be a trader although the price was unclear. Malaysian petrochemical maker Pengerang Refining and Petrochemical (PRefChem) seemed to have awarded its spot sell tender closed on Sep 8. While the awarded price was unclear, the tender was said to have been awarded to a major Malaysian supplier. Offered in the tender was an LPG cargo of 2,500mt including 300mt of raffinate for Sep 15-16 loading from Pengerang.