CFR Far East

　 The CFR Far East market strengthened on tightening supply/demand fundamentals. The Japan Index stood at $770.25/mt for propane and $820.25/mt for butane, while the China Index was assessed at $846.25/mt for propane and $896.25/mt for butane. For Japan delivery, traders were seeking cargoes for October delivery, while in China and South Korea, multiple petrochemical companies were making purchase inquiries for October-delivery cargoes, boosting buying interest. Into China, a Canadian-origin cargo was reportedly concluded for supply to a propane dehydrogenation (PDH) plant in Ningbo. Meanwhile, in the Panama Canal transit slot auction, a record-high awarded price of $5.261 mil was reported for a northbound transit on Sep 1. Rising transportation costs for US-origin cargoes were seen as a supporting factor for CFR Far East prices. Buying interest was also heard further forward. A buy tender was conducted for one 23,000mt propane cargo per month for delivery from November 2027 through March 2028, with the volumes believed to be supplied ultimately for a Japanese city gas company.

FOB Middle East

　 Hormuz Strait reopening remained elusive. Saudi Aramco notified its term customers of September acceptances late last week. However, only a very limited number of vessels were able to transit the Strait of Hormuz, and most term customers were believed unable to take their cargoes. Middle Eastern gas suppliers continued spot sales through ship-to-ship (STS) operations outside the Persian Gulf. Kuwait Petroleum Corporation (KPC) sold a 44,000mt 75:25 cargo for first-half September delivery through an STS operation via its sell tender that had closed on Aug 26. The awarded price was reportedly at a premium of $250-270/mt or close to $300/mt to the September CP on a Chiba delivery basis. This was viewed as significantly higher than the results of KPC's previous tender. The cargo was reportedly awarded to an importer in India, where shortages of September-delivery cargoes had been highlighted.

Asia Pressurized Market

　 The pressurized cargo market remained firm. The strength was largely driven by higher prices for South China-loading cargoes. One key factor was the retreat in selling interest from a Thai refrigerated cargo importer. A refrigerated cargo importer in South China also maintained a wait-and-see stance and did not move on spot sales. As a result, the availability of cargoes in the market declined, tightening supply/demand. Discussion levels for September-loading cargoes rose to premiums in the $170's/mt to the September CP. For Southeast Asia loading, information was heard that a South Korean trader with CFR-based term supply commitments had been covering short positions and purchased a total of four August-loading cargoes from Malaysia. Meanwhile, for delivery to Vietnam, many players appeared to have completed their spot procurement for September delivery, and no progress in discussions was observed.