CFR Far East

　 The CFR Far East market extended gains from the previous week for both Japan and China delivery. As of Jul 16, the Japan Index stood at $686.25/mt for both propane and butane, up $44.25/mt from the previous week, while the China Index rose by $44.25/mt week on week to $751.25/mt for both propane and butane. A sharp rise in crude prices following the renewed closure of the Strait of Hormuz was a key factor supporting CFR Far East prices. There were also concerns that some players might fail to secure Panama Canal transit slots amid rising transit slot costs, leading to expectations that selling interest for second-half August delivery could decline. In the CFR Japan market, two 23,000mt propane cargoes for second-half August delivery were concluded on Jul 16, reflecting firm buying interest. In the CFR China market, Ningbo Kingfa in East China was reported to have purchased one 46,000mt propane cargo for Aug 16-30 delivery into Ningbo through its DES-based buy tender. The tender was believed to have attracted only four cargo offers, highlighting concerns over tight supply availability.

FOB Middle East

　 For Middle East-origin cargoes, supply concerns intensified as tensions in the Middle East escalated once again. Although Middle Eastern gas suppliers in Qatar, Kuwait and Abu Dhabi issued acceptances for August-loading cargoes, buyers remained reluctant to consider lifting cargoes within the Persian Gulf. The market was also closely watching Saudi Aramco's August-loading acceptances, but no notifications had been issued as of Jul 17. Trading activity for Middle East-origin cargoes was limited, with only a few deals reportedly concluded on a ship-to-ship (STS) basis at Sohar, Oman. Against this backdrop, Kuwait Petroleum Corporation (KPC) closed a DES-based sell tender on Jul. 16 for a 44,000mt 50:50 cargo for Aug 1-10 delivery. Information regarding the outcome of the tender was mixed, and details remained unclear.

Asia Pressurized Market

　 In the pressurized cargo market, several buyers emerged for South China loading. Buying interest was stimulated by expectations that import costs for refrigerated cargoes would rise amid renewed tensions in the Middle East. Buyers mainly from Vietnam and the Philippines were seen seeking August-loading cargoes. Meanwhile, sellers adopted a firmer stance. A Thai refrigerated cargo importer was reportedly heard to have raised its offer for August-loading cargoes to a premium of $150/mt to the August CP as of Jul 16. For Southeast Asia loading, selling interest from a Malaysian oil company appeared to have retreated. Amid these developments, selling ideas in discussions for delivery to Vietnam were believed to have risen to a premium of $200/mt to the CP.