LPG: Oct 11-15: Prices drop on receding buying interest
CFR Far East
The CFR Far East market declined last week, pulled down by retreating buying interest for first-half November delivery. Several buyers seemed to have already covered their demand. One Japanese importer and one Japanese trader were reported to have procured 23,000mt propane cargoes by early last week. On the other hand, a 23,000mt propane cargo was traded between traders at a discount of $18/mt to November CFR Far East quotations. On the other hand, sellers finished selling cargoes on hand for this timing and talks were mainly for second-half November delivery. Rim Asia Index for propane and butane as of Oct 14 was at $872.50/mt and $852.50/mt respectively, down $11.50/mt from Oct 7.
FOB Middle East
The November CP was expected at around $843/mt for propane and around $823/mt for butane. Regarding November loading, one Abu Dhabi gas producer issued a sell tender to only some customers. The producer offered a 44,000mt 50:50 cargo for mid-November loading from Das Island. Nevertheless, the results were unknown. On the other hand, although several buyers such as one North Sea gas producer seemed to have room to buy even-split cargoes for November loading, most players were taking a wait-and-see stance as the acceptance for November loading from Saudi Aramco was not released.
Asia Pressurized Market
For the FOB South China market, some importers could apparently sell cargoes for first-half November loading at a premium in the high $30's/mt to the November CP. Spot supply from a Singapore refinery was available. One operator of a refinery (290,000 bbl/day) seemed to offer one 1,600mt cargo for Nov 13-15 loading.