Trade Resources Industry Views The Contango in The ARA Benzene Market Is Widening

The Contango in The ARA Benzene Market Is Widening

The contango in the ARA benzene market is widening as July delivery dates are nearing expiration, sources said Monday.

Benzene for August delivery is at a premium of around $15/mt over the material for balance of July, based on bids and offers Monday.

The July/August contango was assessed at $12.5/mt at Friday's close.

Benzene was last assessed at $1,245.50/mt CIF ARA Friday, $28.50/mt below the price agreed for June contract deliveries.

Last week, the market flipped into contango for the first time in the past three months as the front-end of the curve came under significant pressure, dipping to a one-year low.

The sell pressure for prompt dates, triggered by a sell-off in the markets outside Europe, was exacerbated by incoming volumes from Brazil and the US, sources said.

"There is a lot of July product available...it does not entirely make sense why the whole curve is shifting upwards," one trader said.

Source: http://news.chemnet.com/Chemical-News/detail-2109615.html
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ARA Benzene Contango Widens as July Nears Expiration
Topics: Chemicals