CFR Far East

The CFR Far East market softened for both Japan and China delivery amid lower crude oil prices. As of June 4, the Japan Index were at $820.25/mt for propane, down $9.25/mt from the previous week, and $870.25/mt for butane, down $51.25/mt. The China Index stood at $903.25/mt for propane, down $18.25/mt, while butane fell by $68.25/mt. In propane discussions, several Chinese petrochemical companies secured supply for second-half June to July delivery through buy tenders. Among these, two companies were said to have met their demand with non‑US-origin cargoes such as those from Canada and West Africa. Meanwhile, for butane, supply availability from the Middle East was seen, while demand from Far East importers and those from Southeast Asia was weakening. Supply/demand was slackening and this weighed on the butane market.

FOB Middle East

Although the Strait of Hormuz remained closed, spot availability for Middle East-loading cargoes was appearing. One Middle East trader affiliated with an Abu Dhabi-based gas producer was reported to be able to offer a 44,000mt 50:50 cargo for June Fujairah loading via ship-to-ship (STS) operations. However, Indian importers were not showing interest in procuring this cargo. Buying interest from players in Southeast Asia and China for cargoes containing butane was also weak, and the cargo was said to have remained without a buyer. In term discussions, amid the continued closure of the Strait of Hormuz, one Kuwaiti gas producer was said to have postponed negotiations for term supply for July 2026-June 2027 to October.

Asia Pressurized Market

For South China loading, discussions were slow to progress while sellers and buyers were seen. One major supplier in Vietnam was trying to buy spot cargoes to secure supply for Haiphong, but deals seemed not to be concluded. From Southeast Asia, One petrochemical company in Malaysia, Pengerang Refining and Petrochemical (PRefChem), was reported to have sold two LPG cargoes for June loading. Some sources viewed that the cargoes were two 2,500mt LPG cargoes for second half June loading. One of the cargoes was said to have been procured by a Philippine importer. While information was also heard that the cargo might have been sold on a CFR basis by a major Malaysian supplier, which operated the facility.