CFR Far East

In the CFR Far East market last week, prices declined due to perceptions of ample supply. The Rim Asia Index as of Oct 31 was at $638.25/mt for propane and at $653.25/mt for butane, down $19.25/mt and $9.25/mt respectively from Oct 25. Buying interest for cargoes containing butane was firm and a decrease in butane prices was smaller than that for propane prices. For first-half December delivery, several sellers having pure propane cargoes including one British Major were seen in the market and supply was apparently plentiful. On the demand side, traders trying to cover their short positions were looking for cargoes for second-half December delivery and buying interest from Far East importers was said to be sluggish. For cargoes containing butane as well, two European traders could offer 44,000mt 50:50 cargoes ex-USGC and market sources believed that butane prices might decrease going forward.

FOB Middle East

The November CP was set at $635/mt for propane and $630/mt for butane, higher than market forecasts. After that, both buyers and sellers stayed on the sidelines to observe the situation and spot discussions were thin. On the other hand, an Indian importer was said to be conducting a buy tender for December loading, but this could not be confirmed.

Asia Pressurized Market

On an FOB South China basis, discussion levels were up to a premium in the $55-60/mt to the CP due to strong buying interest. One Chinese importer seemed to have purchased a butane/butadiene mixed cargo for Southeast Asia loading from a Malaysia major supplier. However, the price was not clear. In Vietnam, Dung Quat refinery was said to cut its production by 15% in November. A Southern Vietnamese importer was trying to secure supply and would increase intake of term cargoes by 1,000mt in November.