Carbon Weekly Newsletter

This newsletter was published 1.7.2020 at 16:21pm CEST

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

EUA prices went vertical last few days and touched levels last seen in August 2019. Strong momentum from last the few weeks continued while many are scratching their heads why. Prices have now covered almost a 100% range since the yearly lows seen end of March. Auctions continue to see solid demand despite the power generation spreads being the worst in a while, which could suggest that speculators are fuelling the move up. There are lots parallels with the 2018 EUA rally and direct comparison would suggest that we are at the top of the range and there is increased chance of a pullback to lower levels. Percentage wise the current leg up is extended, timewise we are due for a pullback and every technical indicator is in overbought territory. However, the question remains how deep of a pullback can we still see in the current year. Levels below 20 EUR/EUA seem very far now, but 24 EUR/EUA could be a reasonable target for the downside in the coming weeks.

German power prices are up 1.10 EUR/MWh since last week, with the front year contract trading at 41.70 EUR/MWh. API2 coal prices have are up 1.00 USD/tonne since last week, with the Cal21 contract trading at 57.25 USD/tonne. EUR/USD is unchanged since last week and is currently trading at 1.1270.

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


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.

Copyright 2024 Belektron d.o.o. All rights reserved

Belektron | The value of your emissions