Carbon Weekly Newsletter

This newsletter was published 12.7.2023 at 16:56pm CEST

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

Summer is in full swing and unsurprisingly, markets have become much less volatile. EUAs have been steadily trading in a range, between 88 and 85.50 EUR per tonne, with lower-than-average daily volume, but still healthy for this time of year. For the most part market appears to be quite liquid, as almost every price level, especially rounded ones offered some bids or offers. EUAs also seem to be drawn towards major daily moving averages. Many technical traders are paying close attention to 200 and 50-period moving averages, however price action around them seems to be quite subdued. Fundamentals are currently very difficult to interpret, since market has to react to many mixed or even contradictory signals. Daily auctions have not been offering any discounts and have in most cases cleared premium to secondary market. Heatwave that is prevalent in the central Europe is driving demand for energy higher, while gas storages remain full and driving prices of power lower. Some market participants are concerned that reduced demand for energies is driven by cooling economic activity, which could also be the case. Rate of inflation is getting lower, while intertest rates remain and might remain at current levels for at least some time, according to some central banks officials.

German power prices are down by 10.95 EUR since last week, with the front year contract trading at 130.55 EUR/MWh. API2 coal prices are down by 23.60 USD since last week, with the Cal-24 contract trading at 102.15 USD/tonne. Front year gas prices are down by 5.515 EUR since last week, with the TTF Cal-24 trading at 47.500 EUR/MWh. EUR/USD is up by 140 points since last week and is currently trading 1.1100.

Price development of EUA Dec2023 futures contract

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