Friday, December 2, 2011

Market Commentary

8.60 EUR proved to be resistance and prices went back to around 8.00 EUR. Last two days carbon trading sideways. It didnt stay in the marked corridor, nevertheless 7.80 still provides some support.

"The European Commission today delivered 300 million phase 3 allowances to the European Investment Bank (EIB). 200 million allowances need to be monetised within 10 months from the date of delivery, i.e. by 2 October 2012, in order to allow the Commission to adopt award decisions for successful bidders in the second half of 2012."

This implies an indicative volume of sales of 20 million allowances per month. Actual monthly volumes of monetisation will be set with a view to minimise any impact on the secondary market. In mature markets this should be already reflected in price, as NER 300 sale is old news, however the belief is that it will put further downward pressure on prices.

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