Shanghai’s carbon market ended the week by hitting a fourth straight all-time low on Friday, with allowance prices falling another 10% to close at 6 yuan ($0.93).
Shanghai Emissions Allowances (SHEAs) have fallen 44.4% over the week amid steady supply but no demand pressure prices.
Friday’s drop came as 10,000 SHEAs changed hands, taking the total weekly volume to 33,235. Traders said the thin turnover ensured the market was overly sensitive to small clips offered by small emitters seeking to offload their annual surplus.
Meanwhile, larger sellers have stepped back, hoping prices will bounce back if the government tightens allocation for the 2016 emissions year.
By Stian Reklev – stian@carbon-pulse.com
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