CFR Far East

In the CFR Far East market last week, prices for both Japan and China delivery moved down. The October CP was set lower than market expectations and Chinese players were expected to move on buying non-US origin cargoes. Under this situation, perceptions for ample supply of US-origin cargoes were heightening. The Japan Index as of Oct 2 fell by $34.75/mt from the previous week to $500.75/mt for propane and $516.75/mt for butane. The China Index lost by $73.50/mt from the previous week to $518.50/mt for propane and $512.60/mt for butane. In the CFR Japan market, there were about 10 sellers having 46,000mt propane cargoes for first-half November delivery. Regarding discussions for 23,000mt propane cargoes, one seller lowered its offers to a discount of $13/mt to November CFR Far East quotations (equivalent to $502/mt or a premium of $35/mt to the October CP as of Sep 25), but no buyers responded it.

FOB Middle East

Discussion levels for 44,000mt 50:50 cargoes for November loading climbed to flat to a premium of $8/mt to the November CP. Saudi Aramco set the October CP, but the CP prices were set considerably lower than market expectations. The November CP was also expected to be lower than the October CP and demand for November loading was improving. Further, freight rates for Middle East-Far East were softening and this also stimulated buyers' interest. Under this situation, Qatar Energy(QE) was reported to have carried out a sell tender for 44,000mt 50:50 cargo for Nov 16-17 loading privately and it had sold the cargo at a premium to the November CP.

Asia Pressurized Market

For South China loading, the October CP was set considerably lower than market expectations, but sources perceived that sellers might not lower their offers and offer levels might remain at a premium in the $50's/mt to the CP. In Southeast Asia, one importer in the Philippines was apparently looking for spot cargoes for October. Apart from that, South Pacific (SPI) in the Philippines carried out a term buy tender for 2026 closing on Oct 20 with offers valid until Oct 31. The company was trying to buy 22,000-30,000mt per month for Batangas terminal and 1,000-2,000mt per month for Mandaue Terminal in 2026.