CFR Far East

The CFR Far East market rebounded last week due to rising crude prices. Rim Asia Index for propane and butane as of Aug 6 was at $368.00 per metric tons (/mt) and $348.00/mt respectively, up $14.75/mt from Jul 31. Nevertheless, supply was not tight in the CFR Far East market. Some sellers deferred their sales for second-half August delivery to early September onwards. Although spot freights for Middle East-Far East were at $60/mt or above, 46,000mt propane cargoes for second-half September delivery were traded at a small discount level to the September CP, according to sources. 　

FOB Middle East

The expected September CP was revised up to about $370/mt for propane and about $350/mt for butane owing to rising crude prices. Two Middle East producers were interested in spot sales and supply of cargoes ex-Middle East was ample. Among them, one Qatari producer had apparently sold a 46,000mt propane cargo for early September loading to one European trader on Wednesday. Discussion levels for first-half September loading from the Middle East were heard at a discount of $30-40/mt to the September CP. 　

Asia Pressurized Market

For FOB South China, talks for second-half August loading were muted with few active buyers and sellers. Meanwhile, some sellers seemed to ponder selling cargoes for first-half September loading at a premium in the low $40's/mt to the September CP. Buying interest, however, was weak. Regarding CFR Vietnam, spot demand was not seen in the market. Due to COVID-19 spreading again in Vietnam, domestic demand was likely to drop.

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