Carbon Weekly Newsletter

This newsletter was published 10.6.2020 at 14:37pm CEST

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

EUA prices are slightly up since last week but market is not showing signs of any real direction in the short-term. EUAs briefly touched levels last seen before the pandemic crash above 23 EUR/EUA, but have not managed to stay there for long. Additionally, potential for further upside is diminishing at the current levels as the price move up has already be extended and fundamentals do not support higher prices. However, technical outlook has been quite bullish for some time now and with the breach of the very important 23 EUR/EUA level it appears we have established lowest price point of the year. Lowest price was seen on March 23 at 14.34 EUR/EUA and the way to get there is filled with strong technical supports which makes it very unlikely to be seen again this year. Prices currently established a new trading range with a strong support at 21 EUR/EUA and if this one falls, another strong one at 18.50 EUR/EUA. These levels should provide enough support in the next weeks and possibly months to stop EUAs from falling below.

German power prices are up by 0.65 EUR/MWh since last week, with the front year contract trading at 38.40 EUR/MWh. API2 coal prices have are almost unchanged since last week, with the Cal21 contract trading at 54.45 USD/tonne. EUR/USD is up by 150 points since last week and is currently trading at 1.1380.

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

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