CFR Far East

In the CFR Far East market last week, prices for Japan and China delivery declined since crude oil prices weakened and ample supply. As of Nov 6, the Japan Index for propane and butane fell by $36.50/mt and $31.50/mt from the previous week to $480.00/mt for propane and $506.00/mt for butane. Many sellers having cargoes of US-origin were seen and this weighed on the market. On the other hand, buying interest was firm. Japanese players were trying to cover their short positions after releasing their cargoes from Canada or Australia. The China Index for propane moved down by $12.50/mt from the previous week to $541.00/mt for propane and to $524.00/mt for butane. Several cargoes of US-origin were sold into propane dehydrogenation (PDH) plants in China.

FOB Middle East

Discussion levels for 44,000mt 50:50 cargoes for December loading from the Middle East were at a premium of $5-13/mt to the December CP. Discussions for similar cargoes were not brisk. Middle Eastern gas producers increased term supply cargoes to Indian importers. Due to this, some sources reckoned that the Middle Eastern gas producers had limited room for spot sales. However, buying interest was lackluster as well. Equinor carried out a buy tender for a 44,000-45,000mt 50:50 cargo for December loading closed on Friday but this was only buying interest for Middle East loading in December, some sources viewed. Equinor could purchase a 46,000mt 50:50 cargo for delivery to Port Klang in Malaysia.

Asia Pressurized Market

A sell tender issued by one Malaysian petrochemical company, Pengerang Refining and Petrochemical (PRefChem) that had closed on Nov 5 was awarded to one South Korean trader. Offered was a 1,800-2,500mt of LPG cargo for Nov 15-20 loading from Pengerang. Information was heard that the South Korean trader chartered a spot vessel and would supply the cargo to the Philippines. In Vietnam, a South Korean importer was said to be constructing a refrigerated cargo terminal in Haiphong and the terminal was expected to start operations in 2026. According to some sources, construction was delayed and it would start operations from early 2027.