Spot NZUs ended the week 2.5% up on last Friday as there was sufficient buy interest to maintain current price levels near a three-year high.

The spot contract traded in a NZ$6.65-6.90 range throughout the week, and closed Friday at NZ$6.87 ($4.61), up 17 NZ cents on last week, but on modest volumes.

Buying interest remained solid while a pocket of supply was available around the NZ$7 level.

“Interest is starting to grow in this market and it is looking more and more likely a charge at the recent high of $7.13,” brokers OM Financial said.

While prices are firmer than they have been for months, traders said they are still awaiting news on New Zealand’s INDC and the consequent ETS review, and that any major price movements would be unlikely until more information on the government’s climate policy becomes known to the market.

By Stian Reklev – stian@carbon-pulse.com