|
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: $274.76
(Call 203-662-3638 for
description)
| |
Bids * |
|
Offers * |
|
Trades |
MPI |
| Price/Volume |
2,500 |
@ |
$275.00
|
|
2,500 |
@ |
$277.00
|
|
Not
listed |
|
| |
|
|
$275.00
|
|
|
|
$277.00
|
|
$272.30
|
$274.76
|
Bid and offer for vintage 2004 allowances.
Immediate
Settlement:
| |
|
|
|
Best
Prices ($/Allowance) |
|
Maximum
Volume |
|
| Term |
|
Vintage |
|
|
|
Bid to Buy |
Offer to Sell |
|
Bid |
|
Offered |
|
|
| 1 |
Year |
|
2004
|
|
|
|
$275.00
|
$277.00 |
|
2,500 |
|
2,500 |
|
Allowances |
| 1 |
Year |
|
2005
|
|
|
|
$273.92
|
|
|
2,500 |
|
|
|
Allowances |
| 1 |
Year |
|
2006
|
|
|
|
$273.21
|
|
|
2,500 |
|
|
|
Allowances |
| 1 |
Year |
|
2007
|
|
|
|
$268.81
|
|
|
2,500 |
|
|
|
Allowances |
|
1
|
Year
|
|
2008
|
|
|
|
$250.25
|
|
|
2,500
|
|
|
|
Allowances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Swaps:
| Swap
Rates against vintage 2004 allowances |
| |
2005
|
2006
|
2007
|
2008
|
| Offer |
0.40% |
0.65% |
2.25% |
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 2.26% this month from $268.70 in
February 2004 to $274.76 in March 2004.
|
|
| |
| 2004 |
50 tons |
$1,900/ton |
| 2005 |
50 tons |
$2,900/ton |
| 2006 |
50 tons |
$2,600/ton |
|
|
| 2004 |
50 tons |
@ $2,100/ton |
| 2005 |
50 tons |
@ $2,100/ton |
| 2006 |
50 tons |
@ $2,800/ton |
|
|
|
| V04 for $2,300/ton x2 |
V06 for $2,875/ton |
V05 for $3,450/ton |
| V05 for $3,500/ton x2 |
V05 for $3,650/ton x2 |
V05 for $3,350/ton |
| V04 for $2,250/ton |
V06 for $3,000/ton |
V06 for $2,975/ton x2 |
| V04 for $2,200/ton |
V04 for $2,250/ton |
V06 for $2,950/ton |
| V05 for $3,400/ton |
V04 for $2,300/ton |
V04 for $2,000/ton x3 |
| V04 for $2,150/ton |
V06 for $3,050/ton |
V05 for $3,100/ton |
| V04 for $2,100/ton |
V06 for $3,100/ton |
V04 for $2,100/ton |
| V05 for $3,475/ton x2 |
V05 for $3,650/ton x2 |
V05 for $3,150/ton |
| V04 for $2,300/ton x2 |
V05 for $3,600/ton x2 |
V05 for $3,175/ton |
| V05 for $3,600/ton x2 |
V05 for $3,800/ton |
V06 for $2,900/ton x2 |
| V06 for $2,600/ton x2 |
V06 for $3,000/ton |
V06 for $2,800/ton |
| V06 for $2,650/ton |
V06 for $2,950/ton |
V05 for $3,000/ton |
| V06 for $2,700/ton |
V05 for $3,500/ton |
V04 for $2,000ton |
| V06 for $2,900/ton |
V05 for $3,400/ton |
V06 for $2,725/ton |
| V06 for $3,000/ton |
V06 for $2,900/ton x2 |
V06 for $2,700/ton |
| V06 for $3,100/ton |
V06 for $3,000/ton x2 |
V05 for $3,100/ton |
| V05 for $3,250/ton |
V04 for $2,100/ton |
V04 for $2,000/ton x3 |
| V05for $3,300/ton |
V04-06 for $2,650/ton |
V05 for $3,000/ton x2 |
| V04 for $2,175/ton |
V04 for $2,075/ton x2 |
V04 for $1,950/ton |
| V04 for $2,200/ton |
V04 for $2,100/ton |
|
| V05 for $3,300/ton |
V06 for $2,700/ton x3 |
|
|
|
|
| 2004 |
$2,036/ton |
- $291 |
| 2005 |
$3,603/ton |
- $488 |
| 2006 |
$2,758/ton |
+ $15 |
|
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.
NOx Lower On Medium Volume Trading
The NOx price showed further weakness this month in a fairly active
market. More than 5,000 tons changed hands as natural sellers entered
the market to liquidate some of their surplus holdings. The recent
upside impetus has been provided by the 2006 Vintage, but a lack
of follow up buyers has seen the 06 soften from its highs of $3100
in January to around $2700 in the last week. Other vintages have
also experienced a dip in price, with the 04’s down from around
$2350 to $1950, and the 05’s dropping from a high in February
of $3800 to around $3000 at its last trade. Option expiry on March
15 passed fairly uneventfully, with only a portion of call options
for 06’s with strikes around the $3,000 mark being exercised.
With no immediate news affecting the NOx market, it seems that buyers
are waiting for the ozone season before possible entry to cover
shortfalls.
SO2 Rises Prior to EPA’s Annual Auction
SO2 prices rose again this month from around $270/ton to a high
of $285/ton around the time of the EPA Auction. For much of the
month traders seemed focused on the upcoming Auction, with an expected
heavy participation from natural buyers.
Surprisingly, however, the number of participants in the auction
was significantly less than last year, with only 21 bidders this
year, compared to 82 last year. Also surprising to many was the
eventual clearing and average prices at $260.00 and $272.82 respectively;
both well below the current spot level. A brief flurry of trading
immediately after the results were posted saw $278 offers lifted
with the price eventually returning to the same level as before
the auction at around $285. The days following the auction saw prices
drift down to $273 a ton before settling at $276. Interest in the
vintage 2011 auction was low as well, with only two successful bidders
from a total of five that submitted bids. Clearing and average price
for the 2011’s was $128, which was as expected. The low level
of interest in the forward auction highlights sources’ concern
that the proposed Interstate Air Quality Rule will require 2011
allowances to be forfeited at a 2:1 ratio for compliance.
Another Cantor Client Bids Successfully!
Once again this year Cantor is pleased to report that, using our
Clearing Facility, one of our clients has successfully bid at EPA’s
Annual SO2 Allowance Auction. Our clients have used this facility
to simplify the bidding process and to protect their identity. As
always, Cantor remains 100% market neutral on these and all trades,
acting only on instructions from our clients.
We would like to take this opportunity to extend an invitation to
any of our clients who may be interested in taking advantage of
this facility to please contact us for more information.
|
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 |
|
