Carbon Weekly Newsletter

This newsletter was published 29.4.2020 at 6:13pm CEST

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

EUAs are looking to end the month of April with a 15% gain. Market has been compressing lately and last 5-day range has only covered 1 EUR from the highest to lowest close. Liquidity has also worsened which means that intraday price jumps are more erratic and prices can move on a very light volume. This suggests that market has been well balanced and is likely not ready to continue the March’s bearish trend just yet. Volumes traded on the exchange also dropped which could be a signal that compliance companies have already completed their purchases in the last week. The deadline to submit the allowances is April 30. There should be lower demand after this date, but with a Friday and Monday without an auction, the market impact could be shifted later in the next week. In any case, market will likely stay near the current price a continue without a real direction.

German power prices are down 1.20 EUR/MWh since last week, with the front year contract trading at 36.60 EUR/MWh. API2 coal prices have moved down by 1.00 USD/tonne since last week, with the Cal21 contract trading at 52.60 USD/tonne. EUR/USD is unchanged since last week and is currently trading at 1.0840.

Price development of EUA Dec2020 futures contract
Yours sincerely,
Jan Kresnik 
Carbon Trader

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