CFR Far East

The CFR Far East market strengthened on the back of firm buying interest. The Japan Index stood at $815.50/mt for propane and $865.50/mt for butane, while the China Index was assessed at $904.50/mt for propane and $954.50/mt for butane. In propane discussions, buying interest emerged from traders as well as Japanese importers. For China delivery, multiple players operating propane dehydrogenation (PDH) plants conducted buy tenders and secured full propane cargoes for first-half October delivery. Demand for butane also strengthened, although aggressive sellers appeared to be scarce. Pertamina in Indonesia and PetroVietnam Gas Trading each conducted buy tenders for cargoes containing butane. However, both tenders reportedly attracted offers from only one participant and were ultimately canceled.

FOB Middle East

The exchange of attacks between the US and Iran resumed, pushing prospects for the reopening of the Strait of Hormuz even further out of sight. Against this backdrop, Indian buyers began stepping up procurement amid concerns over supply shortages. Kuwait Petroleum Corporation (KPC) was heard to have awarded two or three cargoes through its DES-based sell tender, which had closed on Sep 2 with bids valid on the same day, for 44,000mt 50:50 cargoes for second-half September delivery. At least one of the cargoes was believed to have been sold into India. The price was reportedly at a premium of $270-320/mt to the September CP, reflecting strong buying interest from Indian players and resulting in significantly elevated price levels. Meanwhile, there were reports that Iranian authorities had blacklisted vessels that transited the Strait of Hormuz without authorization. However, details regarding the vessels involved and the potential market impact remained unclear.

Asia Pressurized Market

The pressurized cargo market remained firm as supply/demand tightened for South China loading. For September loading from South China, some buyers were seeking available cargoes for delivery to Vietnam and the Philippines. Buying ideas reportedly rose to around a premium of $200/mt to the September CP. However, sellers showed little interest at those levels. A Thai refrigerated cargo importer and a refrigerated cargo importer in South China both appeared to have had limited room for sales. For Southeast Asia loading, no active sellers were seen in the market either. Selling interest from a Malaysian oil company or a North Sea gas producer remained subdued. As a result, supplies into Vietnam tightened, prompting importers in the country to procure activity cargoes.