CFR Far East

　 The CFR Far East market firmed on the back of higher crude prices and resilient buying interest. The Japan Index stood at $743.75/mt for propane and $793.75/mt for butane, while the China Index was assessed at $801.00/mt for propane and $851.00/mt for butane. In the CFR Japan market, traders with short positions moved to procure 23,000mt propane cargoes for second-half September delivery. In the CFR China market, a petrochemical company operating multiple propane dehydrogenation (PDH) plants in East China and one importer in East China purchased pure propane cargoes. The importer had already purchased three 46,000mt propane cargoes for second-half September delivery prior to the latest deal, highlighting strong buying interest. In discussions for cargoes containing butane, a 44,000mt 50:50 cargo from Australia was also heard sold to a petrochemical plant in China.

FOB Middle East

　 Peace talks between the US and Iran have reportedly stalled, and there remains no clear prospect for the reopening of transit through the Strait of Hormuz. Even under these circumstances, Basra Gas of Iraq conducted an FOB-based sell tender that closed on Aug 20. The company was trying to sell a total volume of 100,000mt under a three-month contract. However, market sources viewed that participation in the tender was limited, as it remained difficult to secure vessels capable of operating in the Persian Gulf. Meanwhile, Kuwait Petroleum Corporation (KPC) was heard to have sold a 44,000mt 50:50 cargo for first-half September delivery through its sell tender closed on Aug 18. The buyer was reportedly an importer in India. Including this importer, Indian importers have been actively pursuing spot procurement for September-delivery cargoes.

Asia Pressurized Market

　 For South China loading, sentiment was weighed on by expectations that a Thai importer held ample inventories. Discussions for September-loading cargoes were heard at a premium of $140-150/mt to the September CP. Meanwhile, for Southeast Asia loading, a Malaysian petrochemical company did not appear to have been pursuing LPG sales from its Pengerang refinery. However, buyers also showed little urgency, as inventory levels in both Vietnam and the Philippines remained relatively ample. For delivery to Vietnam, a cargo for August delivery into southern Vietnam was reportedly traded. The deal was believed to have been done at a premium of $160/mt to the August CP. Given the relatively low level, some market sources viewed that the cargo might be supplied from Malaysia.