European carbon prices were steady on Wednesday in light volume as a weaker euro was offset by stable German power prices and next-year ARA coal falling to a one-month low.

The Dec-15 EUA futures settled down 2 cents at €7.38 after steadily receding from a session-high of €7.53 touched just after 0900 GMT this morning.

Turnover on the benchmark ICE Futures Europe contract was modest at around 13 million units changing hands.

Healthy volumes were also transacted in the less liquid, farther out contracts, including 1.14 million on the Dec-17s, 1.37 million on the Dec-18s, and 1.5 million on the Dec-20s, which settled at €8.16.

The euro dropped to a two-week low near $1.10 after Greece said it would likely miss a June 5 payment to the IMF if a deal is not reached with the country’s creditors.

But coal for delivery in Europe next calendar year fell below $57/tonne to its lowest in a month, as oversupply and slumping demand weighed.

These two factors, combined with German power prices that stabilised after tumbling on Tuesday, helped maintain current German clean dark spread levels and, in turn, carbon prices.

German power and EU carbon both recorded sizeable losses yesterday due to a steep fall in the euro.

One trader said he had been expecting a downward correction in EUA prices since EU member states officials endorsed the MSR deal last week.

“For me, €7.10-20 looks comfortable level to go long again,” he added, referring to the point at which he expected the market would U-turn and head north again.

Wednesday’s government EUA auction took place in the afternoon instead its normal morning slot, as Poland sold 2.854 million spot units for €7.38 each in one of the country’s few permit sales this year.

The auction cleared 3 cents below market and attracted bids worth a total 8.56 million units, sale hosts EEX said.

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