CFR Far East

In the CFR Far East market last week, propane prices were down in the wake of increasing supply. The Rim Asia Index for propane was at $639.00/mt as of Sep 12, down $8.00/mt from Sep 6. In the meantime, that for butane was at $639.00/mt, up $2.00/mt. Supply/demand of cargoes containing butane was tight and butane prices were pulled up. For second-half October delivery, there were sellers having 23,000mt propane cargoes. At least, two traders could offer 23,000mt propane cargoes. On the other hand, traders trying to cover their short positions were observed in the market and talks were reported at a premium of $6-8/mt to October CFR Far East quotations (equivalent to $633-635/mt or a premium of $32-34/mt to the October CP as of Sep 12). However, a hurricane might cause delays in exports from the US and some market sources viewed that supply was likely to tighten going forward.

FOB Middle East

Spot demand from Indian importers was strong while Middle Eastern gas producers and traders taking cargoes from the Middle East were not offering in the spot market at the moment. Under this situation, supply/demand of cargoes containing butane in the Middle East was seen to be tight and sources pointed out that the spread between propane and butane prices on the expected CP was erased. As of now, the October CP was expected to be at around $600/mt for propane and butane.

Asia Pressurized Market

On an FOB South China basis, buying interest was lackluster and the market moved down. For September loading, discussion levels were seen to be at a premium of about $60/mt to the September CP. In Southeast Asia, spot demand was observed. An Indonesian importer was apparently looking for an October cargo.