CFR Far East

　 The CFR Far East market weakened amid looser supply/demand fundamentals. The Japan Index stood at $973.25/mt for propane and $1,123.25/mt for butane, while the China Index was assessed at $1,048.50/mt for propane and $1,198.50/mt for butane. Sellers capable of supplying pure propane cargoes for first-half November to first-half December delivery emerged in the spot market, and several cargoes were concluded. For Japan delivery, a Japanese importer procured a cargo for first-half December delivery from a trader at a premium in the low-mid $10's/mt to November CFR Far East quotations. In China, one importer in Taiwan conducted a buy tender for pure propane cargoes for delivery by Nov 7 into a propane dehydrogenation (PDH) plant in Ningbo. Although the company reportedly received offers from around five participants, no deal was concluded. Petrochemical companies were said to be struggling to procure propane amid soaring spot market prices, and operating rates at China's PDH plants were reportedly declining to below 70%.

FOB Middle East

　 Several sell tenders were awarded. Kuwait Petroleum Corporation (KPC) sold a 44,000mt 75:25 cargo for second-half October delivery into Chiba through its DES-based sell tender that had closed on Oct 12. The cargo was believed to be destined for South China. QatarEnergy sold a butane-containing cargo of around 50,000mt on a delivered basis to a Thai importer through its sell tender that had closed on Oct 10. In addition, fresh sellers of full propane cargoes for November loading were emerging in West Africa. On the other hand, Middle East gas suppliers were showing an interest in marketing term volumes for 2027. However, loading operations within the Persian Gulf remained difficult, and buyers' appetite for committing to purchases remained weak.

Asia Pressurized Market

　 On an FOB South China basis, offers were still heard at a premium of $450/mt to the CP. Meanwhile, for propane-rich cargoes, some sellers could offer at a premium in the high $300's/mt to the CP. One importer in Vietnam received offers, but did not enter discussions. In Southeast Asia, available cargoes were limited and importers in South Asia were struggling to secure cargoes. For Bangladesh delivery, one major importer, Omera was trying to buy term cargoes via its buy tender. The importer could buy refrigerated cargoes as well.