Spot NZUs closed at NZ$6.92 on Friday, a 2 cent gain on the previous week as market participants showed limited appetite for trading in a market that currently lacks direction.
The spot allowances traded in a NZ$6.80-6.90 range throughout the week, but ticked up to NZ$6.92 just before the market closed Friday.
“The market remains stuck in the trading range it has been in for many weeks though we favour a break of the $7 level at some point,” brokers OM Financial said.
Very little supply is available south of NZ$7, at least from forest-owners, and emitters are in no hurry to push the price up as the market remains over-supplied in the short-term.
In the past couple of months the market has held firm near the highest levels for over two years, but traders expect little momentum until the government has given some indications about what the upcoming ETS review might bring.
Market participants said they expect the NZ carbon market to continue to be range-bound and illiquid in the immediate future, but that Q4 might bring increased levels of activity.
By Stian Reklev – email@example.com