CFR Far East

　 In the CFR Far East market last week, propane prices for CFR Japan declined due to slackening supply/demand. The Japan Index on Sep 25 fell by $8.00/mt from the previous week to $535.50/mt for propane and $551.50/mt for butane. Several traders had propane 46,000mt cargoes for second-half October delivery, but they could not find buyers and considered shifting sales of the cargo for first-half November. A European trader lowered offer prices to a discount of $17/mt to October CFR Far East quotations (equivalent to $527/mt or a discount of $12/mt to the October CP as of Sep 25) and sold to a South Korean importer. Prices for delivery to China lost due to a downward revision of the CP forecast and retreating buying interest. As of Sep 25, the China Index lost by $18.50/mt and by $11.00/mt from the previous week to $592.00/mt for propane and $586.00/mt for butane respectively.

　

FOB Middle East

　 Discussion levels for 44,000mt 50:50 cargoes for October loading climbed to a discount of $5/mt to the October CP, up from the previous week. Chinese players were moving on spot procurement and supply/demand was tighter. Further, talks for 44,000mt 50:50 cargoes for November loading were heard. According to sources, one Omani company and one Japanese trader seemed to have bought similar cargoes at a mid-single digit discount to the November CP. Apart from that, Bharat Petroleum Corporation Limited (BPCL) in India closed a buy tender on Sep 26 with validity until Friday. BPCL looked for a maximum of 45,000mt 50:50 cargoes for November and/or a maximum of two 45,000 mt 50:50 cargoes for December on an FOB Middle East or a CIF basis.

　

Asia Pressurized Market

　 Discussion levels for South China loading moved up to a premium of around $50/mt to the CP since supply/demand was tighter. Several buyers including one major Vietnamese supplier were trying to buy spot cargoes while sellers were hesitant to enter discussions due to high procuring costs for refrigerated cargoes. Available cargoes from Southeast Asia are also few and supply was seen to be tight overall. One petrochemical company in Malaysia issued a sell tender for Sep 25-26 and Sep 27-28 loading from Pengerang and one cargo was reportedly awarded to Vietnam. The price was unclear.