CFR Far East

In the CFR Far East market last week, prices for Japan delivery weakened due to strong selling interest. As of Sep 18, the Japan Index for propane moved down by $3.75/mt from the previous week to $543.50/mt while that for butane climbed by $2.25/mt to $559.50 /mt. Sellers having propane cargoes for USGC loading rushed into spot sales and total 11-12 23,000mt propane cargoes were traded early last week. At that time, the prices were at a discount of $5-8/mt to October CFR Far East quotations while discussion levels for 23,000mt propane cargoes dropped to a discount of $10-12/mt to October CFR Far East quotations late last week. The China Index for propane and butane gained by $10.00/mt and $17.0/mt to $610.50/mt and $597.50/mt respectively since supply/demand for cargoes of non-US origin was tighter. Some operators of propane dehydrogenation (PDH) plants in Chine carried out buy tenders for cargoes of non-US origin, but the tenders were cancelled due to few offers. Some of these operators issued a buy tender for cargoes of US-origin and non-US origin again.

FOB Middle East

Discussion levels for 44,000mt 50:50 cargoes for October loading from the Middle East increased from the previous week to a discount of $2-8/mt to the October CP. As Hindustan Petroleum Corporation Limited (HPCL) moved to buy each 44,000mt 50:50 cargo for October and November loading and Chinese importers were showing buying interest for non-US origin cargoes, demand for cargoes from the Middle East was firm. Moreover, freight rates for Middle East-Far East seemed to be hitting a ceiling, which could push up the market. Under such circumstances, a sell tender by Qatar Energy that had closed on Sep 17 for a 45,000mt 50:50 cargo for loading on Oct 21-23 was reportedly awarded to a Middle Eastern trader affiliated to Saudi Aramco at a discount of $5/mt to the October CP. Meanwhile, information was also heard that the awarded price might be at a premium to the October CP.

Asia Pressurized Market

Regarding discussions on an FOB South China loading basis, some traders were considering buying spot cargoes for South China loading to Vietnam. In the meantime, active sellers were few. One supplier in South China had no room to offer spot cargoes for September loading and it was pondering its selling ideas for October loading in the high $40's/mt to the October CP. In Vietnam, one operator of Nghi Son refinery closed a sell tender on Sep 17 for a 1,700mt LPG cargo for Sep 20-30 loading. Some traders were reportedly considering procuring the cargo and reselling it to other players. One South China supplier received selling interest from traders, but it refrained from entering discussions. LPG cargoes from Nghi Son refinery were usually sold to a major Vietnamese supplier.