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.
