Carbon Weekly Newsletter

This newsletter was published 3.6.2020 at 20:35pm CEST

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

EUA prices have moved up since last week, showing strength and stability inside a very narrow range in the last week. However, this week prices have started to trend higher and also formed a higher high since last week, which would be considered a signal for further strength this week. Technical outlook does not show any weakness in the short-term, but picture is different when looking strictly at the supply side. Auctions are now scheduled for every day until end of July, which is quite a contrast to many auction free days during May and April. This should have some negative impact on the market, but at the moment it is just too strong for the prices to stay at the lower part of the daily ranges for long. All the price dips quickly get bought and additionally auctions show a good amount of interest as well, with clearing prices very near the secondary market price. While prices have potential to turn lower in the coming weeks, the short-term upwards momentum appears too strong for that to happen just now.

German power prices are up by 0.50 EUR/MWh since last week, with the front year contract trading at 37.85 EUR/MWh. API2 coal prices have moved up by 1.90 USD/tonne since last week, with the Cal21 contract trading at 54.70 USD/tonne. EUR/USD is up by 250 points since last week and is currently trading at 1.1230.

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

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