CFR Far East

Early last week, the CFR Far East market had fallen due to increased supply and weak crude prices. Nevertheless, the market surged on Jul 1. One US major supplier was said to actively move on buying back spot cargoes for July to August loading in the FOB USGC market. As a result, sources saw that supply of cargoes for August delivery to the Far East might tighten. Rim Asia Index for propane and butane was at $689.75/mt as of Jul 1, up $34.00/mt and $19.00/mt respectively from Jun 25. On Jun 28, one 23,000mt propane cargo for first-half August delivery was traded at a level equivalent to $650/mt.

FOB Middle East

The July CP for propane and butane was set at $620/mt. The expected August CP was revised up to about $650/mt for propane and butane. One Middle East trader could apparently sell a 44,000mt butane cargo for July loading from Yanbu. For August loading, two Japanese importers could apparently sell 44,000mt 50:50 cargoes at a small premium to the August CP. Some players were seen to contemplate spot purchase in the FOB Middle East market in order to cover their short-position for delivery to India.

Asia Pressurized Market

In the FOB South China market, one importer from South China lowered offers for July loading to a premium in the high $30's/mt to the July CP. In Vietnam, one major Vietnamese importer was expected to commence operation of a floating storage (capacity 60,000mt) offshore Thai Binh in North Vietnam in July.