September SO2 and NOx EA MPI Headlines
- SO2 EA MPI Down 0.85%
- NOx EA Prices Slip Further
- NOx SIP Call Lawsuit Decision
- RECLAIM Prices Hit $94,000/Ton
|
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 |
SEPTEMBER
MPI |
| Price/Volume |
2,500 @ |
$150.00
======== |
2,500 @ |
$152.50
======== |
not listed
============ |
|
| Weighted Average |
|
$150.00 |
|
$152.50 |
$152.07 |
$151.52 |
|
* Bid and offer for vintage 2000 allowances.
Immediate Settlement:
|
Period of Stream |
Best Prices ($/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 |
|
|
$150.00
$148.88
$148.15
$146.34
$144.93 |
$152.50
|
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% |
|
| 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 decreased by 0.85
% this month to $151.52 from $152.83 in August. The SO2 EA market
has experienced lackluster trading this past month because of a
lack of interest from compliance buyers. The trading range this
month was $150.50 to $154.00. The last trade went off at $151.75.
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 for description)
View NOx OTC MPI History
| BEST BIDS TO BUY |
1999: 50 tons @ $320/ton
2000: 50 tons @ $375/ton
2001: 50 tons @ $450/ton
2002: 50 tons @ $425/ton
|
| BEST OFFERS TO SELL |
1999: 50 tons @ $400/ton
2000: 50 tons @ $450/ton
2001: 50 tons @ $525/ton
2002: 50 tons @ $500/ton
|
| RECENT TRADE PRICES |
$500/ton - 2002
$500/ton - 2001
$400/ton - 2000 x2
$400/ton - 2000
$410/ton - 2000
$415/ton - 2000
$370/ton - 1999 x3
$435/ton - 2000 x3
$335/ton - 1999
$425/ton - 2000
$525/ton - 2001
$400/ton - 2000
$325/ton - 1999
$360/ton - 1999
$360/ton - 1999
$500/ton - 2000
$410/ton - 1999
$425/ton - 1999
$425/ton - 1999
$440/ton - 1999
$525/ton - 2002
$490/ton - 2000
$500/ton - 2000
$447/ton - 1999
in chronological order |
| MARKET PRICE INDEX |
1999 = $369/ton (down $120)
2000 = $420/ton (down $198)
2001 = $496/ton (down $74)
2002 = $479/ton (down $59)
|
NOx EA Prices Slip Further
The NOx EA Market for September saw a decrease in prices and a
dramatic increase in volume. Many of the buyers were compliance
buyers who: (1) recognized that the ozone season is nearing its
end, and (2) better understood what their compliance requirements
would be. This summer, electricity use has been lower than anticipated,
causing electricity generation units to run below normal capacity.
Many of those units that have been running are coal-fired. NOx
EA prices may have played a part in the types of units that ran
during this summer. We can’t help but wonder what NOx EA prices
would have been had the summer weather been more typical in combination
with higher fuel costs (and related switching).
MARKET NEWS:
NOx SIP Call Lawsuit Decision
On August 25, 2000, The Circuit Court of Appeals for the District
of Columbia ruled in favor of State and Industry petitioners and
postponed the implementation date of the NOx SIP Call from May
1, 2003 until May 31, 2004. The Court ruled that, in accordance
with EPA’s original SIP Call provisions, States and Industry were
to be allowed a 43 month “grace period” from the date that SIPs
were submitted to achieve compliance. EPA had originally required
SIPs to be submitted in September 1999. However, a prior D.C.
Circuit Court ruling had placed a stay on EPA calling for SIPs
on that date. The Court subsequently lifted the stay and gave
States until October 1, 2000 to submit their SIPs; this is the
reason for postponing the SIP Call implementation date. It appears
that the date of compliance for the SIP Call has slipped by 13
months. However, two items should be considered now: 1) the Section
126 timeline for 2003 implementation presently remains in place;
and 2) the petitioners that caused the August 25 decision have
requested certiorari from the U.S. Supreme Court, with the desire
to have the full NOx SIP Call overruled. There’s certainly more
to come…
SIP Call NOx Allowance Market
- What Happened to Bid/Ask??
In last month’s MPI Bulletin, we noted that the market saw a bid
increase of $300/ton to $3,000/ton for up to 500 tons and an offer
of $5,000/ton. Since that time, a bit more volatility has been
thrown into the market by way of the SIP Call decision. As a result,
we have taken these bid and offer prices off the market for the
moment. Once participants have had the opportunity to analyze
the meaning of the SIP Call decision, we expect bids and offers
to return to the market.
RECLAIM NOx RTCs Hit $94,000/ton
As fall commences, prices are flirting with the $100,000/ton mark
in the Los Angeles Area cap and trade REgional Clean Air Incentives
Market (RECLAIM). The most recent vintage 2000 NOx RTC transaction
cleared at $47/RTC, or $94,000/ton. The upward price trend started
around the first of the year when vintage 2000 sold for about
$1/RTC ($2,000/ton). Prices broke through the $10/RTC mark on
June 7; the $20/RTC mark on July 14; the $30/RTC mark on July
21; and the $40/RTC mark on August 14th. Currently, the best bid
for vintage 2000s stands at $30/RTC, with the best offer at $50/RTC
and the most recent trade at $47/RTC. Prices are a bit lower for
the vintage 2001 and later year RTCs. The best offer for vintage
2001 stands at $25/RTC, with a bid at $20/RTC and the last trade
at $41/RTC. For short streams, the best offer stands at $12/RTC,
with the best bid at $10.20/RTC, and the most recent trade at
$10/RTC for vintages 2001 through 2005.
Did you know that Canada
and the US?
agreed late last month to mutually work toward ozone reductions?
The plan calls for Canada to establish emissions reduction targets
analogous to the emissions reductions that the U.S established
under the NOx SIP Call. Watch this issue closely; negotiators
are scheduled to meet again in mid-October in Washington, D.C.
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:
- October 16-19, 2000 2000 Financial Times - Energy presents
PowerMart
- October 18-20, 2000 FORBES Magazine Environmental SuperConference
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 |
| Corinne Boone, Vice President |
Toronto |
GHG |
416-350-2177 |
| Tony Gallagher, Associate |
New York |
Coal |
212-938-4670 |
| Ralph Mercurio, Associate |
New York |
Coal |
212-938-4670 |
| Jude Moussa, Associate |
New York |
SO2/NOx EAs |
212-938-4250 |
| Laurie Gage, Associate |
New York |
SO2/NOx EAs |
212-938-4250 |
| Christine Grandstaff, Associate |
Los Angeles |
RTCs/ERCs/DERs |
949-597-0517 |
| Elizabeth Arner, GHG Specialist |
New York |
GHG |
212-938-8700 |
| Lori Oshiro, Office Manager |
San Francisco |
All Emisisons |
415-296-9573 |
| Lauren Kisling, Broker's Assistant |
Darien, CT |
ERCs/NOx EAs/ DERs |
203-662-3638 |
Questions/Comments? E-mail Cantor Environmental Brokerage@cantor.com
© 2001 Cantor Fitzgerald Brokerage, L.P., All Rights Reserved.
|
