The spread between the second half August and September laycans in the Asian isomer-grade mixed xylenes market has widened from flat to a contango of minus $12/mt in the past three trading days, S&P Global Platts data showed Wednesday.
Successive offers for the H2 August/September timespread since last Friday have widened the contango in stages to minus $4/mt, minus $8/mt and finally minus $12/mt in the latest assessments for both the FOB Korea and CFR Taiwan markers on Tuesday.
A market source said there were a lot of August cargoes yet to find a home, with approximately 19,000 mt waiting to be sold.
This included a 5,000 mt consignment loading from Taiwan that was sold by producer CPC via tender to a trader, but does not yet appear to have been sold on, the source said.
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“In addition to this, there are three lots belonging to South Korean traders that are still waiting to be sold,” the source said.
A steep contango between the prompt and forward-month laycans also emerged in H2 June, when the contango between the H2 July and August laycans widened to minus $7/mt amid ample prompt availability at that time.
