CFR Far East

In the CFR Far East market last week, prices went up due to firm demand and strong crude oil prices. The Rim Asia Index for propane and butane was at $682.00/mt and $687.00/mt as of Oct 3, up $28.75/mt and $23.75/mt respectively from Sep 27. Since propane prices in the October CP and the expected November CP were $5/mt higher than butane prices, the rise in propane prices was larger than that for butane prices. On the other hand, the premium to the November CP shrank due to weak demand. Along with the National Day holidays, Chinese players retreated to the sidelines this week. However, spot demand from traders was seen and the propane market was supported. On the other hand, freight rates were soaring and fixed prices were high. Some sources perceived that buying interest from China might retreat going forward.

FOB Middle East

The November CP was forecast at $645/mt for propane and $640/mt for butane. For November loading, Middle East producers were inactive in spot sale but some players taking term cargoes from the Middle East apparently considered reselling them in the spot market. With sellers emerging and the freight market surging, sources reckoned that discussion levels for 44,000mt 50:50 cargoes for November loading had fallen to a premium of $15-20/mt to the November CP.

Asia Pressurized Market

On an FOB South China basis, Chinese players did not appear due to long holidays and activity were seen to be thin. In Southeast Asia, a refinery in Brunei operated by a petrochemical producer in China recently sold a cargo for loading from Muara in Brunei on Oct 13-15 to Haiphong, according to sources. Regarding term discussions, one importer from the Philippines was carrying out a buy tender for 2025 on a CFR basis.