CFR Far East

The CFR Far East market declined last week on slack supply/demand. Rim Asia Index for propane and butane as of Oct 28 was at $841.75 per metric ton (/mt) and $821.75/mt respectively, down $38.25/mt from Oct 22. For second-half November delivery, several sellers rushed into spot sales and three sellers sold 23,000mt propane cargoes at levels equivalent to a premium of $9.5-15/mt to the November CP on Oct 28. Most players shifted their attention to first-half December delivery but some sellers already began to move on spot sales for this timing. A North Sea gas producer sold 46,000mt propane cargo to a Japanese importer. Further, a 23,000mt propane cargo was traded at a premium of equivalent to a premium of $28/mt to the December CP between traders.

FOB Middle East

The November CP was forecast at $845/mt for propane and $830/mt for butane. Two Indian importers were said to have procured 44,000mt 50:50 cargoes for December loading at a discount of $2-4/mt to the December CP. Supply appeared to be ample as about eight offers had been apparently submitted into a buy tender carried out by one of them. On the other hand, buying interest from importers in India and Indonesia seemed to be thin. Sources saw that discussion levels for December loading were at a discount of $2-6/mt to the December CP.

Asia Pressurized Market

For the FOB South China market, some importers were not keen on spot sales for November loading due to power shortage. Thus, offers were not heard. For term discussions for delivery to Southeast Asia, one buy tender for 2022 seemed to have been awarded for North Philippines at a premium of about $80/mt to the CP.