Carbon Weekly Newsletter

This newsletter was published 30.8.2023 at 17:53pm CEST

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

EUA prices have been stable in the recent days. Trading has been conducted in a proper summer fashion with low daily ranges and very low volumes. Other instruments in the energy complex have followed in the same style. Fundamentally there have not been much changes, however the end of halved auction period is coming to an end this week already. Bigger auction volumes are starting this Friday with the German auction of around 2.1 million EUAs but the real test for the market starts next week when EU auction will be offering 3 million EUAs daily. Gas storages appear almost fully filled and we have seen fossil fuel demand steadily dropping across Europe. It seems that market participants are expecting weakening of EUA prices on the back of reasons listed before. This was also shown in commitment of traders report which showed a slight increase in net short position from investment funds that now hold around 8.7 million EUA short. Winter, that could tilt fundamentals more bullish, is still a little while away so for now we will have to see how the market absorbs the increased auction volume first.

German power prices are down by 2.3 EUR since last week, with the front year contract trading at 136.70 EUR/MWh. API2 coal prices are down by 0.80 USD since last week, with the Cal-24 contract trading at 128.50 USD/tonne. Front year gas prices are down by 0.10 EUR since last week, with the TTF Cal-24 trading at 54.40 EUR/MWh. EUR/USD is up by 80 points since last week and is currently trading 1.0930.

Price development of EUA Dec2023 futures contract

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