This newsletter was published 12.10.2022 at 17:47pm CEST

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

Second week in October started with three strong auctions in a row, suggesting buyers might have started to be more aggressive. For now, sellers had control of the market most of the time, but encountered large buying activity, when market eyed 65 EUR. Consequently, a narrow trading range between 65 and 70 EUR has been established, that has been going on for more than a month. At the moment market could be well balanced, despite long term technical indicators suggesting bearish bias and sometimes high intraday volatility, caused by news. Trading participants are still waiting for clear epilogue regarding REPowerEU, rather than guessing in what shape or form amendments could take place. Average daily volumes in December 2022 futures contract have been steadily declining since beginning of September, which is quite unusual, as usually activity picked up by the end of summer. This has affected market depth, since relatively large movements occur on relatively low volume spikes.

German power prices are up by 5.00 EUR since last week, with the front year contract trading at 435.00 EUR/MWh. API2 coal prices are down by 13.00 USD since last week, with the Cal23 contract trading at 270.00 USD/tonne. EUR/USD is down by 160 points since last week and is currently trading 0.9700.

Price development of EUA Dec2022 futures contract