CFR Far East

　 The CFR Far East market declined for both Japan and China delivery. As of Jun 25, the Japan Index stood at $550.50/mt for both propane and butane, down $50.50/mt from a week earlier. The China Index was assessed at $615.50/mt for both propane and butane, also down $50.50/mt week on week. The weakness stemmed from softer crude prices and increased supply availability. Sellers with availability for second-half July to first-half August delivery appeared in the spot market for both propane and butane cargoes. In propane discussions, more than five deals were reportedly concluded for 23,000mt propane cargoes on a CFR Chiba basis for second-half July delivery. For first-half August delivery, cargoes of the same size were also reportedly traded on a July CFR Far East quotations basis. In discussions involving cargoes containing butane, Kuwait Petroleum Corporation (KPC), through its sell tender that closed on Jun 25, sold a 44,000mt 50:50 cargo for Jul 10-31 delivery to a Chinese importer. In addition, a Japanese supplier reportedly sold an Australian-origin cargo comprising 33,000mt of propane and 11,000mt of butane into China.

FOB Middle East

　 For Middle East-loading cargoes, spot demand remained weak amid expectations that transits through the Strait of Hormuz would resume and that supplies of term cargoes would start flowing again. Some market sources also pointed out that Indian importers had already begun receiving term cargoes on an STS basis off Oman from a Middle Eastern trader under an Abu Dhabi gas producer. Along with subdued buying interest, Kuwait Petroleum Corporation (KPC), as mentioned above, was said to have abandoned plans to sell on an FOB basis and instead switched to CFR sales. Meanwhile, many shipowners were still believed to be reluctant to send vessels into the Persian Gulf, leaving cargo-loading operations in the region difficult. In addition, with the announcement of the July CP approaching at month-end, some Far East importers viewed that a propane CP should be above $600/mt, while butane should be priced $20-30/mt higher than propane.

Asia Pressurized Market

　 The market for pressurized cargoes collapsed last week. Buying interest was weak while refrigerated cargo importers were rushing into spot sales to lower stocks. For South China loading, offers were heard at a premium of $110-120/mt to the July CP while bids were only reported at a premium of $100/mt to the July CP. In Southeast Asia, an available cargo was also observed. One Major Malaysian supplier was reportedly offering its cargo ex-Pengerang to traders. In Vietnam, Ca Mau gas plant was said to stop operations until this year, but supply/demand seemed not to be tight. Discussion levels for Haiphong arrival significantly dropped last week.