This newsletter was published 13.8.2020 at 12:00pm CEST

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

EUA carbon units were moving in 25.50 – 27.50 Euro range this week. For the moment we are closer to the lower border of this range; December 2020 future contract is trading around 26 Eur. Volatility has come down in recent weeks as it is usual for the summer holiday period. Primary auction volumes in August are halved. Even reduced volumes do not attract much buying as most of the auctions have relatively poor cover ratio and they mostly clear below market. It seems that there is no real demand for carbon units at prices above 25 Eur although market, at least for the moment, refuses to go down further.

Other European energy markets are also showing sings of weakness. German front year power contract is currently trading little below 40 EUR/MWh and API2 coal is at 57 USD per tonne. EURUSD is now at 1.1820 level.

Price development of EUA Dec2020 futures contract

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