EU Market: Prices consolidate in light trade a day after testing 2015 high

Published 20:02 on October 13, 2015  /  Last updated at 23:39 on October 22, 2015  /  EMEA, EU ETS  /  No Comments

European carbon prices crept up in light, range-bound trade on Tuesday, consolidating in a new trading range a day after testing a 2.5-year high.

European carbon prices crept up in light, range-bound trade on Tuesday, consolidating in a new trading range a day after testing a 2.5-year high.

Front-year EUAs trading on ICE Futures Europe ended 3 cents higher at €8.33 on light turnover of 7.7 million units traded after notching a €8.30-8.36 intraday range.

A further 3.2 million allowances collectively changed hands between the Dec-16 and Dec-18 futures.

The Dec-15s receded on Monday after testing their 2015 high of €8.43, but have stayed above their technical support level around €8.27.

The EU’s spot auction for 2.918 million units cleared at €8.30 on Tuesday, attracting total bids worth 8.6 million permits and clearing on par with the secondary market.

The UK will sell a further 3.123 million EUAs on Wednesday.

Meanwhile, European coal prices plumbed a new decade-low below $48.50/tonne while the euro rose against the US dollar for a fourth straight day.

However, weaker German baseload power prices weighed on the clean dark spreads, trimming them by up to 3.5% compared to Monday’s close.

CER prices were little changed on the day, with what appears to be a 500-lot spread trade done on between the Dec-16s and 17s as the session’s sole transaction on ICE.

By Mike Szabo – mike@carbon-pulse.com

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