CFR Far East

In the CFR Far East market last week, prices for Japan delivery strengthened along with tight supply/demand for second-half November delivery. As of Oct 23, the Japan Index for propane and butane gained by $32.50/mt from the previous week to $493.00/mt for propane and $529.00/mt for butane. The number of sellers having pure propane cargoes for second-half November delivery was gradually decreasing while buying interest from traders and importers was brisk. In the CFR China market, propane prices were pulled up by firm demand while butane prices declined due to an increase in available cargoes. The China Index for propane moved up by $8.50/mt from the previous week to $540.50/mt while that for butane fell by $7.50/mt to $540.50/mt. Sellers having non-US origin cargoes containing butane appeared in the market. Information was heard that a 22,000mt 50:50 cargo was traded at a premium in the $70's/mt to the November CP. The seller was one South Korean player while the buyer was an importer from South China, according to sources.

FOB Middle East

Discussion levels for 44,000mt 50:50 cargoes for November loading from the Middle East increased by $9/mt from the previous week to a premium of $15-23/mt to the November CP. Since the CFR Far East market was recently rising, the CP were seen to be relatively low. Due to this, Chinese and Indian players' buying interest increased and this heightened the premium to the CP. Indian Oil Corporation (IOC)'s buy tender for a 45,000mt 50:50 cargo for December loading was reportedly awarded at a premium of $7/mt to the December CP. The tender was closed on Nov 17. IOC bought a similar cargo for November delivery at the same time.

Asia Pressurized Market

For South China loading, talk levels were seen to be at around $55/mt to the November CP. The November CP was expected to be set below the October CP, importers in Vietnam and the Philippines were keen on buying spot cargoes for November. In South Korea, a 2,000mt of LPG cargo ex-refinery was reported to have been traded for late October delivery to Tanjung Sulong, Malaysia. The buyer was said to be one major supplier in Malaysia and the seller was one South Korean trader. In Brunei, one Chinese petrochemical company operating a refinery was looking for a spot vessel from Muara to the Philippines, but sources perceived that the vessel might be used for term cargo supply.