CFR Far East

In the CFR Far East market last week, prices strengthened in the wake of firm buying interest. The Rim Asia Index for propane and butane was at $653.75/mt and $663.75/mt as of Sep 26, up $18.25/mt and $28.25/mt respectively from Sep 20. Along with tight supply/demand of even-split cargoes, butane prices were higher than propane prices. For propane, buying interest for second-half October and November delivery was brisk. Among traders, several 23,000mt propane cargoes were traded and one Taiwanese importer purchased a pure propane cargo for fuels at its refineries. As for supply, one US supplier stopped exports from mid-last week and some sources believed that it might affect supply/demand for first-half November delivery.

FOB Middle East

The October CP was forecast at $620/mt for both propane and butane. For October loading, demand receded and discussion levels for 44,000mt 50:50 cargoes apparently fell to a premium in the high $10's/mt to the low $20's/mt to the October CP. For November loading, some players seemed interested to do a swap deal whereby they would buy a 44,000mt 50:50 cargo on an FOB Middle East basis and sell a similar cargo on a CFR basis.

Asia Pressurized Market

On an FOB South China basis, many sellers were interested in selling spot cargoes as domestic sales were sluggish. For October loading, offers were heard at a premium of $60/mt to the October CP. As for demand, although some buyers were seen, buying ideas were only heard at a premium in the mid $50's/mt to the October CP. In Southeast Asia, few buyers and sellers were observed and discussions were thin.