CFR Far East

The CFR Far East market surged last week in the wake of strong crude prices. Rim Asia Index for propane and butane was at $844.25/mt and $849.25/mt respectively as of Sep 30, up $46.75/mt from Sep 24. Nevertheless, some sellers could apparently sell cargoes for second-half October delivery. For second-half October delivery, two 23,000mt propane cargoes and one 46,000mt propane cargo were traded. Further, one 23,000mt propane cargo for first-half November delivery and one 23,000mt propane cargo for second-half November delivery were traded as well. 　

FOB Middle East

The expected November CP was revised up to around $810/mt for propane and around $805/mt for butane owing to a rise in crude prices. The October CP for propane and butane was set at $800/mt and $795/mt respectively. For November loading, discussion levels for 44,000mt 50:50 cargo were heard at a premium in the low-mid single digit to the November CP.

Asia Pressurized Market

In the FOB South China market, some sellers including one refrigerated cargo importer were offering October loading at a premium in the high $30's/mt to the October CP. Although buying interest was weak, sellers did not rush into discussions as most importers had reasonable stocks and domestic sales were smooth. For FOB Southeast Asia, one operator of a refinery in Singapore had issued a sell tender for October loading. One Japanese trader won a 1,600mt cargo for Oct 17-19 loading, according to sources. For delivery to South Asia, some sellers began spot sales for forward delivery to Bangladesh. With low demand from Southeast Asia, sellers with cargoes on hand saw merit to sell them into South Asia. In Vietnam, domestic demand in Ho Chi Minh was expected to recover along with the easing of movement restrictions from Oct 1.