CFR Far East

　 The CFR Far East market strengthened further. As of Oct 29, the Japan Index rose sharply week on week to $1,037.25/mt for propane and $1,187.25/mt for butane, while the China Index increased to $1,113.75/mt for propane and $1,263.75/mt for butane. The rally was driven by firm crude oil prices and tightening supply availability into the Far East market. In the CFR Japan market, several Japanese importers moved to procure standalone propane cargoes for December delivery. Concerns over low domestic inventory levels appeared to have prompted buyers to enter the market. Tightness was particularly evident in butane, where limited selling interest heightened concerns over supply availability. In the CFR China market, many Chinese players maintained a wait-and-see stance, and active procurement interest remained limited. Some buyers were reportedly reluctant to purchase at current elevated price levels. Nevertheless, market sources pointed out that many consumers still retained procurement requirements. Should these buyers return to the market, supply/demand could tighten further.

FOB Middle East

　 For Middle East-loading cargoes, Saudi Aramco notified its term customers of the November CP at $720/mt for propane and $780/mt for butane. The figures were significantly below market expectations or paper values. With passage through the Strait of Hormuz and the Bab el-Mandeb Strait continuing to face difficulties, Middle Eastern gas suppliers have maintained sales through ship-to-ship (STS) operations off the west coast of India. QatarEnergy (QE) was reportedly heard to have sold a 44,000mt propane cargo loading during Oct 25-Nov 3 to a South Korean importer through its sell tender that closed on Oct 26. Meanwhile, Kuwait Petroleum Corporation (KPC) was heard to have sold a 44,000mt 75:25 cargo on a CFR Chiba basis through its sell tender that closed on Oct 28. The cargo was reportedly sold to an importer with storage facilities in South China.

Asia Pressurized Market

　 The pressurized LPG market remained soft. For South China loading, several sellers, including a Thai importer, emerged in the spot market. Some sellers were heard to have lowered offers for November-loading cargoes in an effort to stimulate buying interest. Meanwhile, buyers were also seen in the market, but they appeared reluctant to pay elevated premiums and were not actively pursuing purchases. For Southeast Asia loading, a Chinese petrochemical producer operating a refinery in Brunei was reportedly believed to have room to sell November-loading cargoes. For delivery to Vietnam, information was heard that Petrolimex purchased one cargo for mid-November delivery from Zhuhai, South China on a CFR basis via its buy tender.