US Benzene gained over 10% in a trading session reaching to a 6-year high. Benzene being on a continuous bull run showcased exceptional spike by around 36 percent since the beginning of April.
Spike in prices has been majorly attributed to the disrupted supply chains and limited availability of inventories. Moreover, the demand for derivatives which has been on the rise since Q1 of 2021.
Contracts for May benzene prices leapt an astonishing surge by 12% on a single day. The market is keen on the buyers which are open at purchasing the cargoes at a high premium, thus the timing of purchase is a significant factor affecting the pricing these days. The tight supply constraints in Europe have been affecting the Benzene price gain since a long time.
A trader revealed that high liquidity has been major factor greatly affecting the steep price rice. Traders further stated that the supply is expected to remain tight in the near term leading to a further increase in the prices.
