EUA Dec18 approached 10 euro

2018-02-14 06:26

Supported by another strong auction, higher power prices and companies purchasing for compliance, the EUA Dec18 gained 4.4% 13 February and hit a daily maximum at 9.98 euro.

Supported by another strong auction, higher power prices and companies purchasing for compliance, the EUA Dec18 gained 4.4% yesterday and hit a daily maximum at 9.98 euro. The price rally was accompanied by a high volume. 30 million allowances traded in the benchmark contract only, the highest in 2018.
The reasons supporting the rally are:
 
  • Installations prepare for the compliance period and although some of them (for example in Poland, France and Hungary) started receiving free allocation for 2018, they prefer purchasing the allowances in the market, because their future allocation will be lower due to the post-2020 reforms that affect benchmarks, production levels and carbon leakage list.
  • For the same reason, those installations that accumulated a surplus earlier, are not willing to sell their allowances. (Or they are simply waiting for even higher prices, maybe starting with double digits.) As a consequence, the sellers’ side is empty these days.
  • The last two days, market saw strong auctions with clearing prices in line or above the secondary market and cover ratio above 3. (3.87 today)
  • After declining since the first days of January, the German front year power produced a bullish engulfing and went back to the 200DMA, suggesting that the price trend might reverse.

Call us via Skype or contact directly our traders.

Szánthó, Péter - HU
Falguera, Marc - ES
Belinchón, Verónica - ES
Blanke, Marco - DE
Bujacz, Tomasz - PL
Wilamowski, Bartosz - PL
Verger, Guillaume - FR
José M. García Berrendero - ES, PT
Kolaciova, Katerina - Aviation, CZ, SK
Abajas, Africa - Aviation
Gordziel, Christian - DE
Manea, Florentina - RO
Härmatis, Alexandra - SE, NO, DK

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