CFR Far East

　 The CFR Far East market strengthened on the back of firm crude oil prices. The Japan Index rose from the previous week to $891.50/mt for propane and $1,041.50/mt for butane, while the China Index increased to $989.50/mt for propane and $1,139.50/mt for butane. Supply/demand fundamentals tightened after Chinese players moved to procure spot cargoes before the start of the National Day holidays on Oct 1. Supply of 44,000mt 50:50 cargoes was particularly tight in the CFR Far East market. US-loading 50:50 cargoes were drawn into India and Southeast Asia, reducing the number of cargoes available to the Far East. In contrast, supplies of full propane cargoes loading from the US remained relatively ample. As a result, premiums to the CP for butane in the Asian market continued to trade at higher levels than those for propane.

FOB Middle East

　 Saudi Aramco announced term customers of the October CP on Sep 29, setting propane at $680/mt and butane at $730/mt. Reflecting tight butane supply fundamentals, the spread between propane and butane was widened to $50/mt from $35/mt in the previous month, according to sources. Multiple Middle East gas suppliers have continued to market spot cargoes through delivered-basis sales and ship-to-ship (STS) operations. Saudi Aramco also appeared to be considering loading cargoes at Ras Tanura and marketing them through STS operations outside the Persian Gulf. Meanwhile, Kuwait Petroleum Corporation (KPC) was believed to have sold a 44,000mt 50:50 cargo to an Indian importer through a DES-based spot sell tender for delivery by late October.

Asia Pressurized Market

　 In the FOB South China market, available cargoes increased while buying interest was not strong that much. For October loading, several sellers could offer spot cargoes at a premium of $440-450/mt to the October CP while there were also offers at a premium of $420/mt to the October CP. In the meantime, buyers were hesitant to enter spot discussions at this level. One buyer in Vietnam felt that the market was high and had thin interest in spot procurement. In the Philippines and Vietnam, some buyers already secured spot cargoes. One importer in the Philippines bought spot cargoes since the delivery for their refrigerated cargoes under the term contracts was delayed. One importer in South Vietnam bought a cargo for second-half October delivery through a buy tender.