CFR Far East

In the CFR Far East market last week, prices for Japan and China delivery moved up along with heightening buying interest. As of Nov 13, the Japan Index for propane and butane climbed by $20.50/mt from the previous week to $505.50/mt for propane and $526.50/mt for butane. The China Index for propane went up by $17.00/mt from the previous week to $558.00/mt for propane and to $541.00/mt for butane. Several Japanese players procured full propane cargoes and Chinese players carried out a buy tender for propane cargoes including cargoes of US-origin for December delivery. With unsold cargoes not being seen, supply/demand in the CFR Far East market was tighter. One petrochemical company in East China was trying to buy a pure propane cargo for first-half December delivery, but the tender was cancelled due to only one offer.

FOB Middle East

Discussion levels for 44,000mt 50:50 cargoes for December loading from the Middle East gained by $12/mt from the previous week to a premium of $17-25/mt to the December CP. Tightening supply/demand sent the market higher. A gas supplier in Kuwait apparently requested its term customers to cancel due to a shortage of supply because production reduced along with issues at a refinery in the country. Nonetheless, players that willingly accepted the request were not seen. Some trader said that it could not respond to the request to secure supply to India. Under this situation, a Middle Eastern trader affiliated to an Abu Dhabi gas supplier was looking for a 45,000mt 50:50 cargo for December loading but sellers did not emerge. In addition, Chevron tried to purchase a 44,000-45,000mt 50:50 cargo through a buy tender but there were not offers.

Asia Pressurized Market

For South China loading, buying inquiries from Vietnam were heard. On the other hand, importers for refrigerated cargoes in South China were focusing on supplying cargoes in the domestic market and refraining from showing offers at the moment. Importers in the Philippines were continuing term discussions for next year. In Vietnam, views were heard that supply was thin. Some buyers seemed to look for spot cargoes for South China loading.