Carbon Weekly Newsletter

This newsletter was published 03.07.2024 at 18:35pm CEST

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

EUAs have posted decent gains since last week, with prices breaching 200- and 50-day moving averages that were coinciding around 71 EUR. This strength came after an abysmal June, where the price was trending down for the whole month, with highs around 78 EUR on the first day of the month and lows around 66 EUR on the last day of the month. Interestingly, funds have strengthened their short position by 3 million EUAs to around 21.2 million EUAs since last week. This shows that bearish fundamentals could keep a lid on further increases in the price, especially as we enter the summer period, which was historically less volatile. Additionally, EUA’s recent strength was not coming from gas, which has been declining on the front-month contract and staying steady on the yearly contract since last week. However, the downside may also be limited since the upcoming compliance deadline at the end of September can support the market towards the end of summer.

German power prices are up by 3.41 EUR since last week, with the front-year contract trading at 93.29 EUR/MWh. API2 coal prices are down by 2.80 USD since last week, with the Cal-25 contract trading at 114.25 USD/tonne. Front-year gas prices are up by 0.335 EUR since last week, with the TTF Cal-25 trading at 37.835 EUR/MWh. EUR/USD is up by 120 points since last week and is currently trading at 1.0800.

Price development of EUA Dec2024 futures contract

 

 

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