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What are the Cantor Environmental Brokerage SO2 EA and NOx EA MPIs?
The Cantor Environmental Brokerage Market Price Indices (MPIs) are prices that
reflect current market conditions for Clean Air Act Title IV SO2, Ozone
Transport Commission and Section 126/NOx SIP Call emission allowances
(EAs). The MPI is an average of the following three numbers (where available)
(Note: fees and commissions are not factored into the MPI):
- Recent transaction price - prices from the most
recent transactions (sales, swaps, and options) either executed by Cantor Environmental Brokerage and/or reasonably believed by Cantor Environmental Brokerage to
have occurred. Also note that the MPI does not include transactions
that are reported as retirements or facility changes of ownership because
such transactions may not be reflective of current market conditions.
- Lowest offer price - lowest price, reported to Cantor Environmental Brokerage , at which a seller is willing to sell.
- Highest bid price - highest price, reported to Cantor Environmental Brokerage , at which a buyer is willing to buy.
| Note:
All information contained here is obtained by Cantor Environmental Brokerage from sources believed to be accurate and reliable. However,
because of the possibility of human and mechanical errors, as well
as other factors, such information is provided "as is"
without warranty of any kind and Cantor Environmental Brokerage , in particular,
makes no representation or warranty as to the accuracy, timeliness,
or completeness of this information. Under no circumstance shall
Cantor Environmental Brokerage have any liability to any person or entity
for (a) any loss or damage in whole or in part caused by, resulting
from, or relating to any error (negligent or otherwise) or other
circumstance involved in procuring, collecting, compiling interpreting,
analyzing, editing, transcribing, transmitting, communicating, or
delivering any such information, or (b) any direct, indirect, special,
consequential, or incidental damages whatsoever even if Cantor Environmental Brokerage is advised in advance of the possibility of such damages, resulting
from the use of, or inability to use, any such information. The
data and information contained herein are, and must be construed
solely as statements of opinions and not statements of fact or recommendations
to purchase, sell, or hold SO2 or NOx EAs. All prices are merely
indications of interest, do not represent firm bids and offers,
and their terms are subject to change without notice. NOWARRANTY,
EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS,
MERCHANTABILITY, OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH
DATA OR INFORMATION OROTHER OPINION IS GIVEN OR MADE BY Cantor Environmental Brokerage IN ANY FORM OR MANNER. |
| For
information on trading SCAQMD RTCs and/or ERCs, SJVAPCD and BAAQMD
ERCs, Illinois ATUs, ERCs, DERs, or Sewerage Facilities Charge Credits
please visit www.emissionstrading.com
or call 1-800-228-2955 ext. 1, 2, 4, 6, 7, 8, or 9. For
information on trading HGA NOx Allowances, call 800-228-2955 ext.
13 or 14. For information on trading NOx OTC Allowances, Section
126 Allowances, and SO2 Allowances call (203) 662-3638 or 800-228-2955
ext. 6 or 12. For information regarding Greenhouse Gas Credits
visit www.CO2e.com, or call 800-228-2955 ext. 10. |
If you would like to receive this bulletin as an e-mail attachment in
Adobe format please fax this to 203-662-3643 with your e-mail address
listed below, or send an email to apaton@cantor.com.
Don’t want to get this anymore? No problem! Tell us by checking
the box below and faxing this back to 203-662-3643:
[ ] Stop sending this to me. Give us your name, company, and fax number.
Cantor Environmental Brokerage Market Price Index: $268.70
(Call 203-662-3638 for
description)
| |
Bids * |
|
Offers * |
|
Trades |
MPI |
| Price/Volume |
2,500 |
@ |
$268.00
|
|
2,500 |
@ |
$272.00
|
|
Not
listed |
|
| |
|
|
$268.00
|
|
|
|
$272.00
|
|
$266.11
|
$268.70
|
Bid and offer for vintage 2004 allowances.
Immediate
Settlement:
| |
|
|
|
Best
Prices ($/Allowance) |
|
Maximum
Volume |
|
| Term |
|
Vintage |
|
|
|
Bid to Buy |
Offer to Sell |
|
Bid |
|
Offered |
|
|
| 1 |
Year |
|
2004
|
|
|
|
$268.00
|
$272.00 |
|
2,500 |
|
2,500 |
|
Allowances |
| 1 |
Year |
|
2005
|
|
|
|
$266.95
|
|
|
2,500 |
|
|
|
Allowances |
| 1 |
Year |
|
2006
|
|
|
|
$261.97
|
|
|
2,500 |
|
|
|
Allowances |
| 1 |
Year |
|
2007
|
|
|
|
$243.88
|
|
|
2,500 |
|
|
|
Allowances |
|
1
|
Year
|
|
2008
|
|
|
|
$207.70
|
|
|
2,500
|
|
|
|
Allowances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Swaps:
| Swap
Rates against vintage 2004 allowances |
| |
2005
|
2006
|
2007
|
2008
|
| Offer |
0.40% |
0.65% |
2.26% |
5.75% |
|
Ratios for base years other than 2004 are available upon request
|
SO2 EA Market Beat - The Cantor Environmental Brokerage
SO2 EA Market Price Index increased by 3.39% this month from $259.90
in January 2004 to $268.70 in February 2004.
|
|
| |
| 2004 |
50 tons |
$2,300/ton |
| 2005 |
50 tons |
$3,500/ton |
| 2006 |
50 tons |
$2,550/ton |
| 2008 |
50 tons |
$2,175/ton
|
|
|
| 2004 |
50 tons |
@ $2,350/ton |
| 2005 |
50 tons |
@ $3,600/ton |
| 2006 |
50 tons |
@ $2,700/ton |
| 2008 |
50 tons |
@ $2,500/ton |
|
|
|
| V04 for $2,400/ton |
V04 for $2,350/ton |
V05 for $3,750/ton |
| V06 for $2,950/ton |
V05 for $3,800/ton |
V04 for $2,350/ton |
| V06 for $3,000/ton |
V04 for $2,250/ton |
V05/04 spread for $1,375/ton |
| V07 for $3,000/ton |
V04 for $2,250/ton |
V05 for $3,750/ton |
| V05-08 for $3,000/ton |
V05 for $3,800/ton |
V04 for $2,350ton |
| V04 for $2,350/ton |
V05 for $3,750/ton |
V05 for $3,650/ton |
| V04 for $2,350/ton |
V04 for $2,300/ton |
V05 for $3,625/ton x2 |
| V05 for $3,800/ton |
V04 for $2,350/ton |
V05 for $3,575/ton |
| V06 for $3600/ton |
V04 for $2300/ton |
V04 for $2325 x2 |
| V04/06 spread $350/ton |
|
|
|
|
|
| 2004 |
$2,327/ton |
- $143 |
| 2005 |
$3,603/ton |
+ $484 |
| 2006 |
$2,743/ton |
+ $59 |
|
As always Cantor Environmental
Brokerage does not trade for its own account. All allowances
purchased in the auction or traded in the open market are for our clients.
It is Cantor Environmental Brokerage s policy to keep the identity of
our clients and their positions in the market in strict confidence.
SO2 and NOx Prices Range Bound
This Month:
Apart from a couple of large vintage 2004 and 2005 NOx EA trades
at the beginning of the month, the market has been fairly listless
in February. Vintage 2004 prices ranged from $2250 to $2400/ton,
with most trades settling at the $2300/ton level. Vintage 2005
prices ranged from $3550-$3800/ton. The lack of buying interest
has caused a slow drift in prices to lower levels, as can be seen
in the current prices for the 2006 and 2007 vintages. After a spike
last month to as high as $3,000/ton, both have slid to around $2600/ton
on little volume. Market participants seem to be waiting for the
completion of 2003 reconciliation by EPA and are looking for more
impetus as this year’s ozone season approaches. SO2 also
saw large volumes (>50,000 tons by February 6) at the beginning
of the month. However volumes dried up, and prices traded in a
range of $256 to $276, as market participants focused on reconciliation.
Interstate Air Quality Rule (IAQR) and Mercury Rule Formally Proposed;
Comment Periods Close March 30, 2004:
EPA formally proposed its
Rule to Reduce Interstate Transport of Fine Particulate Matter
and Ozone (Interstate Air Quality Rule) (signed December 17, 2003;
published January 30, 2004). The proposed rule would cut emissions
of SO2 and NOx in the eastern U.S. and is an important component
of EPA's efforts to implement the new national air quality standards
for fine particle pollution and 8-hour ozone standard. The IAQR
regulations as proposed can be found at Vol. 69 Federal Register
20, Page 4566, et seq. (January 30, 2004), while the Mercury Rule
can be found at Vol. 69 Federal Register 20, Page 4652, et seq.
(January 30, 2004). EPA February 24, 2004 also made available on
its website a Model Mercury Cap and Trade Rule, which will soon
be published in the Federal Register. The proposal can be found
at: http://www.epa.gov/air/mercury/pdfs/hgsnprfinal022404.pdf
While the comment period closes March 30, 2004 for the formally
proposed regulations, EPA has scheduled public hearings to be held
(today) February 25, 2004 and February 26, 2004 in Philadelphia,
Pennsylvania; Research Triangle Park, North Carolina; and Chicago,
Illinois. More information is available at EPA’s website
at: http://www.epa.gov/air/interstateairquality/pubhear.html
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To
Reach Cantor Environmental Brokerage Staff Call 800-228-2955 or Dial Direct:
|
Josh Margolis |
San Francisco |
RTCs/ERCs/DERs |
800-228-2955 ext 1 |
|
Andy Kruger |
Darien, CT |
ERCs/NOx & SO2 EAs/DERs |
800-228-2955 ext 6 |
|
Laurie Gage |
New York |
ERCs/NOx & SO2 EAs/DERs |
800-228-2955 ext 7 |
|
Robin Langdon |
San Francisco |
RTCs/ERCs/DERs |
800-228-2955 ext 2 |
|
Christine Grandstaff |
Los Angeles |
RTCs/ERCs/DERs |
800-228-2955 ext 4 |
|
Patrick Bartosh |
Houston |
NOx EAs/ERCs/DERs |
800-228-2955 ext 14 |
|
Mike Hammond |
San Francisco |
RTCs/ERCs/DERs |
800-228-2955 ext 9 |
|
Lauren Kisling |
Darien, CT |
ERCs/NOx & SO2 EAs/DERs |
800-228-2955 ext 7 |
|
Alexa Paton |
Darien, CT |
ERCs/NOx & SO2 EAs/DERs |
800-228-2955 ext 6 |
|
Diarmuid McGarry |
San Francisco |
Back Office Manager |
800-228-2955 ext 3 |
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