CFR Far East

　 In the CFR Far East market last week, propane prices softened due to slack supply/demand. As of Dec 4, the Japan Index for propane moved down by $2.50/mt from the previous week to $534.50/mt while that for butane increased by $2.50/mt to $589.50/mt. As the price spread between propane and butane in the CP forecast shrank, butane prices increased. For Japan delivery, most traders covered their demand for first-half January delivery and retreated to the sidelines. In the CFR China market, sellers appeared and two operators of propane dehydrogenation (PDH) plants in China procured 46,000mt propane cargoes for January delivery. One of them bought the cargo for Middle East loading from one Japanese importer.

　

FOB Middle East

　 For loading in the Middle East, buying interest was seen from India. Hindustan Petroleum Corporation Limited (HPCL) closed its buy tender on Dec 4 with validity until Dec 5 for a total of four 45,000mt 50:50 cargoes for January to March loading. Results of the tender were not as yet unclear. In addition, Indian Oil Corporation (IOC) was conducting a term buy tender closing on Dec 8 with validity through the same day for a total of 12 cargoes of 45,000mt 50:50 cargoes for loading during January to December 2026. In the meantime, Angolan producer, Sonangol seemed to have a 44,000mt propane cargo loading Jan 8-10 available. Sonangol was anticipated to issue a sell tender soon.

　

Asia Pressurized Market

　 For South China loading in December, buyers including importers in the Philippines and Vietnam were seen while sellers having room to offer spot cargoes were few. Offers were only heard at a premium of $80-90/mt to the December CP and discussion levels increased to a premium of $70-80/mt, according to sources. In the FOB Southeast Asia market, available cargoes were limited as well. One Malaysian petrochemical company did not have cargoes to sell in December and one major supplier in Malaysia did not appear in the spot market. For term discussions, importers in Sri Lanka and Bangladesh carried out a buy tender for 2026.