Carbon Weekly Newsletter

This newsletter was published 8.7.2020 at 16:43pm CEST

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

EUA prices almost touched 30 EUR/EUA in a spectacular move up where prices closed green for 6 days in a row and gained over 20%. 30 EUR/EUA was an important level last year as it marked the top of the yearly range. There is no way to gauge how much further can the prices rises once we breach this important level. One thing is certain though, the liquidity above this level will be much worse than it is right now because uncharted territory always needs some time to find the equilibrium price. Although we have backed down from the highs momentarily, it is too early to call for a reversal down. Other markets are still strong and small corrections in an uptrend can last for 2-3 days before the original direction prevails again. European Parliament has proposed an amendment to EU ETS which would include shipping sector. The details of the definition are not known yet but even if this is confirmed it will take years before it is actually implemented.

German power prices are up 1.10 EUR/MWh since last week, with the front year contract trading at 42.80 EUR/MWh. API2 coal prices are up 1.20 USD/tonne since last week, with the Cal21 contract trading at 58.40 USD/tonne. EUR/USD is up 50 points since last week and is currently trading at 1.1320.

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

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