CFR Far East

　 The CFR Far East market strengthened, supported by firm crude oil prices and strong buying interest. The Japan Index stood at $909.50/mt for propane and $1,059.50/mt for butane, while the China Index was assessed at $1,007.50/mt for propane and $1,157.50/mt for butane. For Japan delivery, multiple traders were looking for pure propane cargoes for second-half October delivery. In the CFR China market, Huayi Petrochemicals in South China procured a non-US-origin full propane cargo for second-half October delivery from a Middle Eastern trader through a buy tender that closed on Sep 17. Formosa Chemical Industries Ningbo (FIC) in East China also purchased a Canadian-origin propane cargo for first-half November delivery through a reissued tender after canceling an earlier buy tender. On the other hand, the sharp rise in CFR Far East market levels appeared to have prompted some Chinese players to refrain from making purchases.

FOB Middle East

　 Kuwait Petroleum Corporation (KPC) continued to offer cargoes on a delivered basis through tenders. KPC's tender that closed on Sep 16 for a 44,000mt 50:50 cargo for end-September to first-half October delivery was apparently awarded at a premium of $450-460/mt to the September CP, with some indications as high as $500/mt to the September CP. A Middle Eastern trader affiliated with an Abu Dhabi gas supplier also appeared to be marketing cargoes through ship-to-ship (STS) operations outside the Persian Gulf. There were also reports that Indian importers had been procuring cargoes from the trader through private negotiations. However, the number of players capable of loading cargoes within the Persian Gulf remained limited, and the availability of sellable cargoes continued to be scarce.

Asia Pressurized Market

　The pressurized cargo market gained sharply due to tight supply situation. In the FOB South China market, refrigerated cargo importers had limited butane supply and available cargoes containing butane were few. Under this situation, some sellers only offered pure propane cargoes while other suppliers were reportedly asking customers to accept term cargoes with a lower butane ratio and a higher propane ratio. On the demand side, buying interest from South Asia was strong. Importers in Bangladesh were looking for spot cargoes for October delivery and importers in India were also seeking pressurized cargoes since supply of refrigerated cargoes appeared to be insufficient.