EUAs bullish [now 13.90] — strong German power triggers price rally

the first day after the 4-days break, the EUA-Dec10 contract continued its rally which was already started on Thursday. Supported by a strong energy complex and pushed by the publication of the emissions data in 2009 on April 1st, the EUAs rose up to EUR 13.44. The weekly auction of spot EUAs in Germany cleared at EUR 12.98.
The emission rights were even stronger on Wednesday, after a short-lived drop in the morning. But after the end of the auction in Germany, carbon found its way back to positive territory. The auction of future EUAs reached EUR 13.34, while the emissions rights closed at EUR 13.53 later this day (Source: Climate Corporation)

Thursday saw the extension of the upswing albeit in a more modest way, and once more it was German power that pushed the carbon market up. Market participants were already discussing whether the EUAs were testing a new price range as Thursday’s close at EUR 13.56 was once again above the EUR 13.50 line.

Finally, the Dec-10 contract took another leap forward on Friday and went out of the week at EUR 13.70. In comparison to the days before, Friday’s traded volume was low, but in general participation during the Easter Week was very high.

The EUA spot contract also headed north to close at EUR 13.49. Almost in line, although not as impressive, were gains on the CER market, where Friday’s settlement price of EUR 12.19 was 49 Cent higher than the week before. The EUA/CER spot spread was consequently at EUR 1.30.