Carbon Weekly Newsletter

This newsletter was published 23.6.2021 at 4:22pm CEST

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

 

Bullish run in EUAs continues for the fourth straight day as the market prints the highest level in June so far at 54.85 EUR/EUA. Despite all the auctions this week cleared a fraction below secondary market, the market remained strong and closed higher every trading day. Longer term moving averages are catching with current market prices, which might provide even more buying pressure. Volume traded in June has been steadily declining in comparison to mid-May. Today we are experiencing higher intraday volatility in the market due to quarterly option expiry. Some traders will be active in futures by which they hedge exposure in options. Although the largest strike lays at 50 EUR/EUA, it appears the market is heading towards 55 EUR level with 12.6 million of open interest. As the first heat wave hits the Europe, the German power day-ahead contract settled at the highest price since the year 2017, at 93.84 EUR/MWh. Bullish fundamental and technical theses in EUA might remain during the following weeks, especially due to increased electricity demand and strong sentiment in majority of energy commodities.

German power prices are up by 3.45EUR since last week, with the front year contract trading at 69.10 EUR/MWh. API2 coal prices are up by 2.75 USD since last week, with the Cal22 contract trading at 84.75 USD/tonne. EUR/USD is down by 160 points since last week and is currently trading at 1.1965.

Price development of EUA Dec2021 futures contract

 

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