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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 415-296-9582 with your e-mail address
listed below, or send an email to loshiro@cantor.com.
Don’t want to get this anymore? No problem! Tell us by checking
the box below and faxing this back to 415-296-9582:
[ ] Stop sending this to me. Give us your name, company, and fax number:
Cantor Environmental Brokerage Market Price Index: $180.89
(Call 203-662-3638 for
description)
| |
Bids * |
|
Offers * |
|
Trades |
MPI |
| Price/Volume |
2,500 |
@ |
$180.00
|
|
2,500 |
@ |
$182.00
|
|
Not
listed |
|
| |
|
|
$180.00
|
|
|
|
$182.00
|
|
$180.68
|
$180.89
|
Bid and offer for vintage 2003 allowances.
Immediate
Settlement:
| |
|
|
|
Best
Prices ($/Allowance) |
|
Maximum
Volume |
|
| Term |
|
Vintage |
|
|
|
Bid to Buy |
Offer to Sell |
|
Bid |
|
Offered |
|
|
| 1 |
Year |
|
2003
|
|
|
|
$180.00
|
$182.00
|
|
2,500 |
|
2,500 |
|
Allowances |
| 1 |
Year |
|
2004
|
|
|
|
$179.55
|
|
|
2,500 |
|
|
|
Allowances |
| 1 |
Year |
|
2005
|
|
|
|
$177.77
|
|
|
2,500 |
|
|
|
Allowances |
| 1 |
Year |
|
2006
|
|
|
|
$176.47
|
|
|
2,500 |
|
|
|
Allowances |
| 1 |
Year |
|
2007
|
|
|
|
$169.901
|
|
|
2,500 |
|
|
|
Allowances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Swaps:
| Swap
Rates against vintage 2002 allowances |
| |
2004
|
2005
|
2006
|
2007
|
| Offer |
0.25% |
1.25% |
2.00% |
6.50% |
|
Ratios for base years other than 2003 are available upon request
|
SO2 EA Market Beat - The Cantor Environmental Brokerage
SO2 EA Market Price Index increased by 1.30% this month from $178.58 in
July 2003 to $180.89 in August 2003.
|
|
| |
| 2003 |
50 tons |
$3,000/ton |
| 2004 |
50 tons |
$2,500/ton |
| 2005 |
50 tons |
$3,200/ton |
| 2006 |
50 tons |
$2,000/ton |
|
|
| 2003 |
50 tons |
@ $3,200/ton |
| 2004 |
50 tons |
@ $2,700/ton |
| 2005 |
50 tons |
@ $3,500/ton |
| 2006 |
50 tons |
@ $2,400/ton |
|
|
|
| V04 for $2,650/ton x2 |
V03 for $3,400/ton x2 |
V04 for $2,400/ton x2 |
V04 for $2,900/ton |
| V03 for $3,100/ton |
V03 for $3,500/ton x2 |
V03 for $2,750/ton |
V06 for $2,175/ton |
| V03 for $3,000/ton |
V03 for $3,450/ton |
V03 for $2,700/ton |
V03 for $3,200/ton |
| V03 for $3,075/ton |
V03 for $3,100/ton |
V05 for $3,225/ton |
V04 for $2,700/ton x2 |
| V04 for $2,600/ton |
V05 for $3,500/ton |
V03 for $2,650/ton |
V03 for $3,000/tpy |
| V03 for $3,200/ton |
V03 for $2,900/ton |
V03/04 spread for $450/ton |
V03 for $2,900/ton |
| V04 for $2,750/ton |
V03/04 spread for $400/ton |
V03/04 spread for $350/ton |
V05 for $3,400/ton |
| V05 for $3,650/ton |
V03 for $2,850/ton |
V04 for $2,450/ton |
V03 for $3,050/ton |
| V03 for $3,250/tpy |
V05 for $3,425/ton |
V04 for $2,500/ton |
V04 for $2,700/ton |
| V04 for $2,950/ton |
V05 for $3,400/ton |
V04 for $2,550/ton |
V04 for $2,650/ton |
| V03 for $3,350/ton |
V04 for $2,500/ton |
V03 for $3,000/ton |
V03 for $3,000/ton |
| V04/05 spread for $900/ton |
V05 for $3,300/ton |
V04 for $2,700/ton x4 |
V04 for $2,600/ton |
| V03/04 spread for $550/ton |
V03 for $2,750/ton |
V05 for $3,600/ton x2 |
V03 for $3,050/ton x2 |
| V05 for $3,500/ton |
V03 for $2,900/ton |
V05 for $3,500/ton |
V03 for $3,000/ton |
| V06 for $2,200/ton |
V03 for $3,025/ton |
V03 for $3,000/ton |
V03 for $3,100/ton |
|
|
|
| 2003 |
$3,095/ton |
- $271 |
| 2004 |
$2,638/ton |
- $309 |
| 2005 |
$3,416/ton |
+$333 |
| 2006 |
$2,195/ton |
|
|
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.
| May & June NOx Emissions Data
Available: With second quarter NOx emissions data reported
to EPA, EPA expects to make available the raw data from NOx Budget
emissions sources for the months of May and June, this week. The
release of this data has been keenly anticipated by sources in the
OTC region who are eager to compare emissions for this year against
those of previous years, bearing in mind the reduced NOx EA allocation
for 2003.
NOx EA Prices Off, But Relatively Stable: After
prior months’ dramatic downturns, prices for NOx EAs, while
down, did not experience the dramatic decreases seen in recent months
(this month’s 2003 MPI is $3095). With heavy volume on the
month, it appears that buyers and sellers have found a plateau of
bid and ask interest. Prices in vintage 2003 NOx EAs traded sideways
in the low $3000s over the course of the month. At this point, all
eyes are on weather for the balance of the ozone season, and fuel
of choice indications; each of which will effect NOx emissions.
SO2 EA Prices Up: While natural gas prices experienced
some volatility over the past month, and appeared to be on the downturn,
recent prices have seen a dramatic upswing. Faced with the prospect
of hotter weather and increased electricity load demand, generators
have been choosing coal as their primary fuel (where possible).
The resultant increase in SO2 emissions has caused increase in SO2
demand. This fact, in combination with new buyer interest and the
ever-decreasing SO2 EA bank, caused prices to rise over the past
month. Prices were down at the close of business on August 25,2003,
however, largely as the result of a slowdown in trading interest
stemming from the summer “doldrums”. We anticipate that
the months ahead will see increased demand in SO2 EAs.
Revised NSR Regulation Expected to be Signed:
A final, revised New Source Review (NSR) regulation is expected
to be executed by EPA’s Acting Administrator before the next
Congressional session. The revised regulation was prompted, in part,
to clarify what constitutes a “Major Modification” within
the meaning of the regulation. New or existing facilities (which
make major modifications) in nonattainment areas must go through
NSR permitting, which requires installation of the latest emissions
control technology and techniques (Lowest Achievable Emission Rate
{LAER}) as well as obtain emission offsets. SO2 and NOx EA sources
have been watching the rule closely. As proposed, the definition
of what constitutes a major modification appears to maintain the
status quo. Had a stricter definition been derived, additional emissions
controls would have been triggered by maintenance, causing reduced
emissions and, in turn, reducing SO2 and NOx EA demand. Lawsuits
by a number of northeast states have been threatened, and are anticipated,
if the regulation is executed as currently approved.
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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 Jersey |
NOx &SO2 EAs/RTCs/ERCs/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 6 |
|
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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