EU Market: EUAs ease ahead of holiday period after hitting 8-day high

Published 17:21 on December 23, 2015  /  Last updated at 17:21 on December 23, 2015  /  EMEA, EU ETS  /  No Comments

European carbon prices eased on Wednesday after hitting a fresh eight-day high, as the euro and energy complex dipped and a few speculators took profits ahead of the holiday period.

European carbon prices eased on Wednesday after hitting a fresh eight-day high, as the euro and energy complex dipped and a few speculators took profits ahead of the holiday period.

The Dec-16 EUA futures trading on ICE ended down 3 cents at €8.29 after climbing to an intraday high of €8.38 earlier – the loftiest level recorded since Dec. 11.

Volume on the benchmark contract was very light at 3.9 million, with a further 1.2 million units changing hands across the rest of the futures curve. Some 1.4 million allowances were linked to contract rolling, ICE data showed.

“Tomorrow’s basically a half day and then liquidity is typically limited between Christmas and New Years, so some of the speculative length that remained [in the market] was likely packed up today,” one trader said.

The Dec-16s had risen by 5.3% between their 11-week low of €7.96 touched on Dec. 14 and today’s peak, and are up 1.1% for the week so far.

ICE will offer a full trading day on Thursday, but settlement period will take place just before midday. The bourse is then shut on Friday, before reopening from Dec. 28-31.

Meanwhile, the euro eased against the US dollar on Wednesday, which offset a slight decline in Rotterdam coal prices. German baseload power also eased, which trimmed the country’s clean dark spreads slightly.

EU carbon allowances are on track to be one of the world’s best performing commodities this year, having risen by more than 10% since the end of Dec. 2014.

By Mike Szabo – mike@carbon-pulse.com

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