CFR Far East

In the CFR Far East market last week, prices gained in the wake of increasing demand. The Rim Asia Index was at $648.75/mt for propane and butane as of Aug 22, up $3.25/mt from Aug 16. Traders trying to cover demand were actively seeking spot cargoes. On the other hand, most sellers sold their cargoes on hand to China and the number of sellers having cargoes for second-half September delivery was limited. Last Thursday, a 23,000mt propane cargo was traded at a premium of $7/mt to September CFR Far East quotations (equivalent to $647/mt or a premium of $51/mt to the September CP as of Aug 22) and a 46,000mt propane cargo for first-half October delivery was traded at a discount of $1/mt to October CFR Far East quotations (equivalent to $638/mt or a premium of $41/mt to the October CP as of Aug 22).

FOB Middle East

The September CP was expected to be about $595/mt for propane and about $585/mt for butane. For September loading, spot activity was slowing down. Middle East producers and players taking term cargoes from the Middle East were not moving on spot sale and supply was limited. Discussion levels for 44,000mt 50:50 cargoes were seen to be at a premium of $10/mt and above to the September CP. Nevertheless, with freight rates rising, buyers were less interested to purchase cargoes on an FOB basis. Apart from this, Middle East producers would start discussions on term cargoes for 2025 going forward.

Asia Pressurized Market

On an FOB South China basis, a major Vietnamese importer seemed to have spot demand for first-half September loading. On the other hand, importers in the Philippines were apparently inactive in spot purchase. Discussion levels for September loading were seen to be at a premium in the low $60's/mt to the September CP. In Southeast Asia, a Malaysian petrochemical maker carried out a sell tender for a cargo for end-August loading. Apart from this, active sellers were not seen.