CFR Far East

The CFR Far East market considerably retreated last week due to slack supply/demand. Rim Asia Index for propane and butane as of Nov 19 was at $441.00 per metric ton (/mt) and $461.00/mt, down $36.25/mt from Nov 13. Some Far East importer with excess cargoes moved to resell pure propane and supply increased. At least three 23,000mt propane cargoes for second-half December delivery were traded. The prices had been at $460/mt as of Nov 16 but decreased to $450/mt on Nov 17. After that, with few active buyers in the market, perceptions of slack supply/demand emerged in the market.

FOB Middle East

The expected December CP was revised down to $430/mt for propane and $440/mt for butane owing to a fall in the CFR Far East market. One Qatari producer seemed to have sold a propane-rich cargo for late December loading via a sell tender although details such as the price and buyer were unknown. Apart from that, one or two 44,000mt 50:50 cargoes for December loading were apparently traded in mid-November at a discount of $9/mt to the December CP.

Asia Pressurized Market

On FOB South China, some refrigerated cargo importers from South China were seen to have room to sell cargoes for first-half December loading. Nevertheless, these importers did not apparently ponder lowering offers from a premium in the mid $40's/mt to the December CP, given procurement costs of refrigerated cargoes. As for CFR Vietnam, spot demand did not appear yet in the market. Domestic demand was retreating compared to October, according to sources. This was because domestic wholesalers and end-users had procured large quantities in October due to bullish sentiments that the November CP might be considerably above the October CP.

Sample Report