This newsletter was published 6.5.2020 at 2:07pm CEST

The current prices on the European carbon market are as follows:

EUA prices have decreased slightly since last week. Market continues to trade in a tight range and with relatively small volumes. With prices now at the lower part of the last month’s range, we might see a gradual increase towards the upper part of the channel towards 21 EUR/EUA. Part of the reason for a possible bounce is linked to recent auction outcomes. Yesterday’s auction cleared well below the market and barely got enough interest compared to the offered volume. However, the market did not react too negatively apart from the immediate knee-jerk reaction after result publication, when prices immediately dropped by 0.40 EUR. Despite a very weak auction result, prices managed to settle the day unchanged compared to the auction price. In contrast, today’s auction cleared above the market price despite the doubled offer size compared to yesterday. Market reacted positively and started moving higher. Both reactions suggest that market is not ready to fall down further just yet.

German power prices are down 0.50 EUR/MWh since last week, with the front year contract trading at 36.10 EUR/MWh. API2 coal prices have moved up by 0.30 USD/tonne since last week, with the Cal21 contract trading at 52.90 USD/tonne. EUR/USD is almost unchanged since last week and is currently trading at 1.0810.

Price development of EUA Dec2020 futures contract

Disclaimer:

In accordance with relevant legislation this communication is provided for informational purposes only and is not considered an investment research, financial analysis or other form of general recommendation relating to transactions in financial instruments. It is not an offer or a solicitation of an offer to buy or to sell any instruments or to participate in any trading strategy.

It is the responsibility of each interested party to make their own enquiries that the information provided is appropriate to their individual circumstances in addition to any legal, regulatory, tax or other implications for themselves or their business. The information is solely for your internal use and may not be issued as the basis of any product or reproduced, redistributed or transmitted in whole or in part in any form or by any means, electronic or mechanical, including photocopying or by any information storage or retrieval system without the prior express written consent of Belektron.