Spot NZUs clawed back some lost ground this week, closing Friday at NZ$6.75 ($4.32), up 2.7% from last week, when it fell to a 15-week low.

The spot contract traded in a narrow NZ$6.65-6.75 range throughout the week in low volumes, and ended in the high end of that range with muted interest on both sides.

“Last week’s dip appears to be behind us with this market looking firmer by the day,” brokers OM Financial said, adding that some fresh demand could come in now that we have moved into Q4.

But volumes remained low, with fewer than 100,000 NZUs changing hands.

As has been the case for the past several months, the market lacks direction and traders are waiting for news on the upcoming ETS review process before taking any new positions.

But the government has yet to release terms for the review, which is not expected to be finalised until after the December climate meeting in Paris.

By Stian Reklev – stian@carbon-pulse.com

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