Spot NZUs closed 2.1% stronger this week at NZ$7.25 ($4.79) after hitting a three-and-a-half-year high of NZ$7.30 in Tuesday trade before sellers pulled back looking for higher prices.

Friday’s close, up 15 NZ cents on last week, was the strongest seen in New Zealand’s ETS since April 2012, driven by expectations that the ETS review might bring about tighter scheme rules and compliance buyers looking to settle their books before year-end.

According to market participants, there was plenty of buy interest around the NZ$7.10-7.20 level, but sellers held back, testing market appetite for paying up to NZ$7.40-7.50.

“NZUs are holding with the market now $7.10/$7.50. There is a lack of sellers at current levels with only 5k on the offer at $7.50,” brokers OM Financial said Friday.

Meanwhile, Carbon Match ended the week bid at NZ$7.20 and offered at NZ$7.40.

By Stian Reklev – stian@carbon-pulse.com

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