CFR Far East

In the CFR Far East market last week, prices for both Japan and China delivery moved up due to buying interest. As of Oct 16, the Japan Index for propane and butane gained by $12.75/mt and $2.75/mt from the previous week to $460.50/mt and $496.50/mt for butane. The China Index also moved up by $9.50/mt and $0.50/mt from the previous week to $532.00/mt for propane and $546.00/mt for butane. For Japan delivery, several traders were trying to buy propane cargoes for November deliivery and one city gas company carried out a buy tender for a propane cargo for December delivery. In the CFR China market, some operators of propane dehydrogenation (PDH) plants wanted to buy non-US origin cargoes while one operator of two PDH plants in China bought two US-origin 46,000mt propane cargoes for November delivery. Supply/demand of non-US origin cargoes was seen to be still tight while supply of US-origin cargoes was said to be ample.

FOB Middle East

Discussion levels for 44,000mt 50:50 cargoes for November loading from the Middle East increased by $6/mt from the previous week to a premium of $6-14/mt to the November CP. Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Limited (HPCL) moved on spot purchase and conducted a buy tender for even-split cargoes for November loading on an FOB Middle East or a CFR India basis one after another. Because of this, supply/demand of similar cargoes was perceived to be tight. Sellers having room for spot sales for even-split cargoes showed a firm stance and selling idea levels were seen to be at a premium in the $10's/mt to the November CP at least. In addition, IOC and HPCL carried out a buy tender for December loading as well.

Asia Pressurized Market

For South China loading, previously sellers showed offers at a premium of $55/mt to the November CP met with bids only heard at a premium in the low $40's/mt to the November CP with bids and offers being wide apart to be done the deals. In Southeast Asia, several petrochemical plants stopped operations in Malaysia due to power outages. Along with this, information was heard that one cargo would be shipped from one Malaysian supplier's terminal on Oct 19-20.