CFR Far East
In the CFR Far East market last week, prices for Japan and China delivery went up along with heightening buying interest from traders. As of Nov 20, the Japan Index for propane and butane climbed by $4.00/mt from the previous week to $509.50/mt for propane and $530.50/mt for butane. The China Index for propane moved up by $5.50/mt from the previous week to $563.50/mt for propane and to $546.50/mt for butane. Traders trying to cover their short positions for 23,000mt propane cargoes for Chiba delivery or 46,000 propane cargoes for China delivery were actively looking for spot cargoes and this pushed up the market. Nevertheless, buying interest receded after spot procurement from some traders. Far East importers also finished spot discussions for second-half December delivery and the rise in the spot market was limited. For butane, one petrochemical company was reported to have procured term cargo for January to March 2026 delivery via a buy tender from one Japanese importer.
　
FOB Middle East
Saudi Aramco released its acceptances for December loading on Nov 17 and information was heard that it apparently imposed minus 5% tolerance on propane cargoes for December loading. Further, two term cargoes that one Chinese player and one trader planned to take were reportedly cancelled. In addition, some cargoes ex-Kuwait were also cancelled in December and supply in the Middle East was said to be tight. Under this situation, one US Major that had looked for a 44,000mt 50:50 cargo for December loading via a buy tender before seemed to have bought a similar cargo from one Middle Eastern trader at a premium of around $30/mt to the December CP.
　
Asia Pressurized Market
For South China loading, suppliers did not have interest in spot sales due to low inventory levels, according to sources. In Malaysia, one petrochemical company, Pengerang Refining and Petrochemical (PRefChem) resumed its butadiene extraction facility on Nov 20 and also restarted its naphtha crackers. As its plants for petrochemical products restarted, feedstock LPG was likely to be consumed. Under this situation, no spot sales from PRefChem were heard. In Brunei, one Chinese petrochemical company operating a refinery did not move on spot sales of LPG cargoes in recent days. The company's supply/demand was said to be balanced with term supply to the Philippines.