June SO2 and NOx EA MPI Headlines
- SO2 EA MPI Up 9.10%
- NOx SIP Call Stay Lifted
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What are the Cantor Fitzgerald SO2 and NOx MPIs?
The Cantor Fitzgerald Market Price Indices (MPIs) are prices that reflect current market conditions for Clean Air Act Title IV SO2 and Ozone Transport Commission NOx emission allowances. The MPI is an average of the following three numbers (where available) (Note: fees and commissions are not factored into the MPI):
- Recent price - prices from the most recent transactions (sales, swaps, and options) either executed by Cantor Fitzgerald and/or reasonably believed by Cantor Fitzgerald 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 Fitzgerald, at which a seller is willing to sell.
- Highest bid price - highest price, reported to Cantor Fitzgerald, at which a buyer is willing to buy.
| Note: All information contained here is obtained by Cantor Environmental Brokerage (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 losss 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. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY, OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH DATA OR INFORMATION OR OTHER OPINION IS GIVEN OR MADE BY Cantor Environmental Brokerage IN ANY FORM OR MANNER. |
SO2 MARKET PRICE INDEX and NEWS:
(Call 212 938-4250 or 800-228-2955 ext 5 for description)
View SO2 MPI History
|
Bids |
Offers |
Trades |
JUNE
MPI |
| Price/Volume |
2,500 @ |
$146.00
======== |
2,500 @ |
$148.50
======== |
not listed
============ |
|
| Weighted Average |
|
$146.00 |
|
$148.50 |
$144.08 |
$146.19 |
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* Bid and offer for vintage 2000 allowances.
Immediate Settlement:
|
Period of Stream |
Best Prices ($/Allowance) |
Maximum Volume |
|
| Term |
Start |
|
End |
Bid to Buy |
Offer to Sell |
Bid |
Offered |
|
1 year
1 year
1 year
1 year
1 year |
2000
2001
2002
2003
2004 |
|
|
$146.00
$144.91
$144.20
$142.44
$141.06 |
$148.50
|
2,500
2,500
2,500
2,500
2,500 |
$2,500
|
Allowances
Allowances
Allowances
Allowances
Allowances |
|
Swaps:
| Swap Ratio's against vintage 2000 allowances |
| |
2001 |
2002 |
2003 |
2004 |
| |
|
|
|
|
| Offer |
0.75% |
1.25% |
2.50% |
3.50% |
|
| Ratios for base years other than 2000 are available upon request. |
| DISCLAIMER: ALL PRICES ARE MERELY INDICATIONS OF INTEREST, DO NOT REPRESENT FIRM BIDS AND OFFERS AND THEIR TERMS ARE SUBJECT TO CHANGE WITHOUT NOTICE. THE ABILITY TO EFFECT TRANSFER OF ALLOWANCES IS SUBJECT TO THE FINAL PROCEDURES GOVERNING THE TRANSFER OF ALLOWANCES WITHIN THE ENVIRONMENTAL PROTECTION AGENCY'S ALLOWANCE TRACKING SYSTEM. |
SO2 EA Market Beat
The Cantor Fitzgerald SO2 EA Market Price Index increased by 9.10 % this month to $146.19 from $134.00 in May. Heavy trading took place when options expired at the end of May causing a rally in SO2 allowance prices. The trading range this month was $134.00 to $150.00. The last trade went off at $147.50.
As always Cantor Fitzgerald 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 Fitzgerald’s policy to keep the identity of our clients and their positions in the market in strict confidence.
NOx MARKET PRICE INDEX and NEWS:
(Call 800-228-2955 ext 5 or 6 for description)
View NOx OTC MPI History
| BEST BIDS TO BUY |
1999: 50 tons @ $450/ton
2000: 50 tons @ $650/ton
2001: 50 tons @ $550/ton
2002: 50 tons @ $525/ton
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| BEST OFFERS TO SELL |
1999: 50 tons @ $550/ton
2000: 50 tons @ $750/ton
2001: 50 tons @ $650/ton
2002: 50 tons @ $625/ton
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| RECENT TRADE PRICES |
$700/ton (2000)
$507/ton (1999)
$675/ton (2000)
$660/ton (2000)
$650/ton (2000)
$610x3/ton (2001)
$445/ton (1999)
$450/ton (1999)
$635/ton (2000)
$650/ton (2000)
$625/ton (2001) 5/01 del
$475/ton (1999)
$675/ton (2000)
in chronological order
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| MARKET PRICE INDEX |
1999 = $490/ton
2000 = $688/ton
2001 = $605/ton
2002 = $575/ton
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NOx Prices Seeing Some Stability?
Maybe. There was a slight downturn in prices. However, as the summer is finally upon us, a number of buyers have begun to come to the market. In addition, a number of potential sellers have maintained that at these price levels, it may be more cost effective to make use of their allowances. As such, the market may be heading toward some price equilibrium -- at least for the time being (witness the slight upturn in spot ’00 trade prices). These facts culminated in some very active trading of NOx EAs during the day today. Watch the weather. Watch for dramatic, unexpected power outages. Watch fuel costs. Any or all of these could significantly skew supply and demand curves.
MARKET NEWS:
SIP Submission Deadline
Cantor Fitzgerald staff became aware, but could not confirm by press time, that the US Circuit Court of Appeals for the District of Columbia may have ruled late today in favor of EPA in the SIP Call litigation. The ruling addressed EPA’s request that the Court lift the stay on the date for submission of a revised SIP by the SIP Call states. It is our understanding that the Court ordered that submissions shall be made by 4 months from the date of its ruling.
Litigation Fever Continues
While not of immediate NOx Allowance market impact, it is nevertheless important to note the continuing battle between east coast and mid-west states on the subject of expanding NOx Allowance emissions trading in 2003. In response to “Section 126 petitions” filed by east coast states, EPA indicated that 12 states and the District of Columbia must adhere to the provisions of the NOx SIP call. In response, an appeal of EPA’s decision was filed this month. Stay Tuned.
SO2 Prices Revived - Is $150/ton Far Away?
SO2 EA prices have increased dramatically over the past 4 weeks. Market players believe the primary reason has been that compliance buyers finally realize that the low prices, not seen for almost two years, would not be available forever. As a result, and in combination with the summer generation season, compliance buyers came into the market and began to pick up the “low hanging fruit”. With the trees cleared of the “low hanging fruit”, SO2 EA prices began their upward rally. At the close of today’s market, the bid was $146 and the ask was $148.50. Can $150 be far away? Last month many never thought we would be asking this question.
Want to learn more about emissions trading?
Why not attend one of the many conferences featuring Cantor Fitzgerald speakers? Here's jsut one upcoming event that you may wish to check out:
- September 25-27, 2000 Financial Times - Energy presents PowerMart
- October 16-19, 2000 2000 Financial Times - Energy presents PowerMart
- October 18-20, 2000 FORBES Magazine Environmental SuperConference
Quality Greenhouse Gas Reductions available: Over 20 million Sold or Optioned
Cantor Fitzgerald can assist risk managers in the creation of a portfolio of greenhouse gas reductions and offsets to address their exposure to potential restrictions in their ability to emit greenhouse gases.
For details call Carlton Bartels at 212-938-8700
Cantor Environmental Brokerage Staff and Phone Numbers...
| Carlton Bartels, Managing Director | New York | GHG and All Products | 212-938-8700 |
| Josh Margolis, Senior Vice President | San Francisco | GHG and All Emissions | 415-296-9359 |
| Ed Murphy, Director | New York | Weather | 212-938-2522 |
| Robin Langdon, Vice President | San Francisco | RTCs/ERCs/DERs | 415-296-9495 |
| Andy Kruger, Vice President | Darien, CT | ERCs/NOx EAs/DERs | 203-662-3638 |
| Tony Gallagher | New York | Coal | 212-938-4670 |
| Ralph Mercurio | New York | Coal | 212-938-4670 |
| Beth Arner | New York | GHG | 212-938-8700 |
| Jude Moussa, Associate | New York | SO2/NOx EAs | 212-938-4250 |
| Laurie Gage, Broker | New York | SO2/NOx EAs | 212-938-4250 |
| Christine Grandstaff, Associate | Los Angeles | RTCs/ERCs/DERs | 949-597-0517 |
Questions/Comments? E-mail Cantor Environmental Brokerage@cantor.com
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