CFR Far East

　 The CFR Far East market was pushed sharply higher by the strength in crude oil prices. The Japan Index rose significantly week on week to $957.75/mt for propane and $1,107.75/mt for butane, while the China Index climbed to $1,055.75/mt for propane and $1,205.75/mt for butane. In the CFR Japan market, numerous buyers of propane cargoes were seen, and several deals were concluded. Japanese importers had been attempting to avoid procuring expensive prompt-delivery cargoes. However, some players ultimately moved to purchase cargoes due to low domestic inventory levels. In the CFR China market, little notable activity was seen through Oct 7 because of the National Day holiday. Once the holiday ended, however, several petrochemical companies emerged in the market and began procurement activity.

FOB Middle East

　 Middle East-origin selling interest increased. Kuwait Petroleum Corporation (KPC) was heard to have sold a 44,000mt 50:50 cargo for second-half October delivery through a sell tender that closed on Oct 6 with bids valid on the same day. Following this, KPC issued a new sell tender, closing on Oct 12 with bids valid on the same day, for a 44,000mt 75:25 cargo for second-half October delivery. In addition, QatarEnergy (QE) issued a sell tender for about 24,000mt of propane and about 26,000mt of butane to be lifted via ship-to-ship (STS) operations during Oct 13-23 to selected customers.

Asia Pressurized Market

　 On an FOB South China basis, buying ideas were heard at a premium of $400/mt to the October CP while offers were reported at a premium of $420-450/mt. As price ideas between buyer and sellers were far apart. In Malaysia, LPG exports from Tanjung Sulong were restricted due to some problems. In Bangladesh, some importers raised their bids from previous levels and discussions on a CFR basis for October delivery were conducted at a premium in the $300's/mt to $400/mt to the October CP. For the Philippines, while offers for September delivery had been heard at a premium of $400-500/mt to the September CP, the prices for October delivery were seen at a premium of lower than $400/mt to the October CP. Domestic demand was stable currently, but it was forecast to slow down after the price hike was passed on to end-users. For delivery to Vietnam, the major supplier was selling in the domestic market at relatively low prices compared to the international prices.