CFR Far East

　 The CFR Far East market strengthened for both Japan and China delivery amid improving buying interest. As of Jul 2, the Japan Index stood at $605.50/mt for both propane and butane, up $50.00/mt from a week earlier. The China Index was assessed at $670.75/mt for both propane and butane, rising $55.25/mt over the same period. Traders moved to buy back 23,000mt propane cargoes on a CFR Chiba basis for August delivery, while Chinese petrochemical companies also secured pure propane cargoes through buy tenders. These Chinese players procured US-origin cargoes despite receiving offers for non US-origin cargoes. In butane discussions, a Chinese player issued a buy tender for pure butane cargoes for second-half July to August delivery. However, the tender was reportedly unable to attract any offers.

FOB Middle East

　 In the Middle East market, the July CP was released at $580/mt for propane and $600/mt for butane. The propane price was largely in line with market expectations while the price gap between propane and butane was wider than expectations. The temporary reopening of the Strait of Hormuz encouraged both sellers and buyers to return to the market. Kuwait Petroleum Corporation (KPC) issued a DES-based sell tender for a 44,000mt 75:25 cargo closing at 8:00 local time on Jul 6 with validity until 18:00 on the same day. On the other hand, Indian Oil Corporation (IOC) issued a buy tender for one to two 44,000-45,000mt 50:50 cargoes per month for August-October on an FOB or CFR basis.

Asia Pressurized Market

　 For South China loading, sellers were seen while buyers were limited. Offers were reported at a premium of $110-120/mt to the July CP while buyers considering entering discussions at this level did not emerge. In the meantime, sellers and buyers were both seen in the Vietnam market. An importer in northern Vietnam was heard to have recently purchased a spot cargo for July delivery to Haiphong. The importer was also said to be considering spot procurement for August arrival. Meanwhile, a major supplier in Vietnam had suspended its term supplies to Haiphong, leaving room for spot sales. However, the supplier was reportedly conducting sales negotiations privately in response to inquiries from buyers.