CFR Far East

The CFR Far East market gained in the wake of robust crude prices and tight supply/demand for propane for delivery to Japan. In the middle of last week, one 23,000mt propane cargo for first-half October delivery was traded at a level equivalent to a premium of $29/mt to October CFR Far East quotations. Further, a 23,000mt propane cargo for first-half October delivery to East China was apparently traded at a low-single discount to flat to October CFR Far East quotations. Rim Asia Index for propane and butane was at $721.50/mt and $726.50/mt respectively as of Sep 2, up $18.87/mt from Aug 27.

FOB Middle East

The September CP was set at $665/mt for propane and butane. The expected October CP was revised up to around $690/mt for propane and butane. One Qatari producer released the acceptance for October loading. There were apparently no major advancements and delays against nominations. Further, the Qatari producer had ample supply of pure propane and was expected to have room to sell two to three spot cargoes for October loading. Under this situation, discussion levels for 44,000mt propane cargoes were heard at a discount of $10/mt through the low $10's/mt to the October CP.

Asia Pressurized Market

In the FOB South China market, some sellers such as one refrigerated cargoes importer were offering September loading cargoes at a premium in the high $30's/mt to the September CP. Although buying interest was weak, sellers did not rush into spot sales. According to sources, sellers expected that the domestic wholesale market might rise going forward since the peak demand season was approaching. Therefore, they pondered focusing on supplying to the domestic market. From Southeast Asia, one cargo from Singapore was traded. The cargo would be loaded on Sep 8-14 and was expected to supply to South China. On the other hand, a supplier from Brunei was offering two cargoes for September loading on a CFR basis and was trying to supply to China, according to sources.