MARKETS AND FINANCE PELLETS &63.8It.BZ"QSJM " " ! Pix Pellet Nordic CIF Note: PIX Pellet Nordic CIF focuses on industrial pellets use in the Nordic and Baltic Sea region. The index is based on the previous month’s data and published the 3rd Tuesday of every month at 12 noon GMT+2. For price conversion between price per ton and price per MWh, a coefficient of 4.8 is used, if not otherwise informed by the price provider. The PIX indexes are trade mark registered, worldwide, by FOEX Indexes Ltd. Using the PIX indexes commercially is subject to approval by FOEX Indexes Ltd, the owner of the PIX index trademark. 3344 BBiiooeenneerrggyy IInntteerrnnaattiioonnaall NNoo 7799,, 33--22001155 GLOBAL CARBON MARKETS 64UPOOFt.BSDI EUR The Nordic Baltic Bioenergy event held in Riga in April gave again a good view on the current situation in the bioenergy field. The conference presented possibilities for cooperation between the Nordic and the Baltic countries in bioenergy usage and development. According to Pöyry, the industrial pellet demand in Europe might decrease due to unfavorable market development, e.g. the policy situation in the UK. At least, the pace of growth would slow down. In the same presentation it was also said that the Western Canadian pellet imports to Europe will decrease due to competition from the US South producers, as well as the increasing exports to Japan and South Korea. Hawkins Wright Forest Energy Monitor (FEM) however reports that the Korean industrial pellets imports have been much lower in early 2015 than the second half 2014 monthly average. Usually demand is higher in the second half of the year, so any long-term conclusions from the comparison above cannot be drawn. FEM also reports that the US pellet producers seek to maintain their price levels despite the exchange rate changes, which have further increased the prices of pellets for the European industry pellet consumers in EUR- or SEKterms. This and, for example, changes in oil and power prices have reduced the profitability of European utilities. DONG Energy will convert its final unit at Avedøre power plant to pellets. Statistics show that pellet production increased both in Sweden and Finland in 2014. The consumption of pellets increased too, while both exports and imports decreased. Signs of spring in the Nordic countries in March, though some chillier temperatures were felt again. In terms of the pellet prices, small downward changes were in a slight majority among the quotes received by us. However, as the EUR weakened by 2.6% against the SEK in March, compared to the February 2015 average, this gave pressure downwards for the SEK value and upwards for the EUR value. After removing the highest and lowest 10% of the price quotes, the PIX Pellet Nordic benchmark increased in EUR terms by 0.30 EUR/MWh, or by 0.99% closing at 30.51 EUR/ MWh and decreased in SEK by 4.63 SEK/MWh, or by 1.62%, closing at 282.06 SEK/MWh. BI79/4866/DN Price Comparison Across Global Carbon Markets for March 2015 Program Price Range ($/tonne) Month-end Price ($/tonne) Monthly Price Change (%) Beijing 8.07 - 8.79 8.07 – 8.25 – 4.63 Chongqing 3.87 - 4.92 3.87 – 21.34 – 20.00 Guangdong 3.26 - 5.25 4.54 +34.86 + 14.80 Hubei 3.57 - 4.27 4.17 + 20.47 + 5.55 Shanghai 3.99 - 5.15 4.47 – 13.98 – 13.09 Shenzhen (2013) 6.13 - 7.26 6.52 – 4.64 – 0.07 Shenzhen (2014) 6.44 - 7.10 6.63 – 1.36 + 2.18 Tianjin 3.86 - 4.11 4.16 + 3.17 +0.23 EU ETS (EUA Spot) 7.04 - 7.73 7.58 – 2.40 – 0.72 California (CCA Spot) 12.48 -12.53 12.56 – 0.79 – 0.55 RGGI (Spot)# 5.35 - 5.52 5.37 – 3.41 + 0.20 # covers power sector emissions only China Carbon Market Review Almost all pilot carbon markets saw record-setting trading in March. Huge volumes were traded amidst volatile prices. The reason for this frantic run to the exchange by traders and covered entities was the announcement of compliance timelines by various regulatory bodies. Hubei and Guangdong announced compliance timelines for their covered entities, starting with the submission of greenhouse gas inventories for 2014. Beijing took the lead in this regard with all 190 covered entities submitting their emissions reports. These reports will now go for third-party verification .Traded volume in Beijing was higher than short-term as well as long-term technical indicators on most of the trading days. The price remained volatile albeit in a narrow range. Traded volume last month was more than twice what it was in February 2015 and more than four times the volume traded in March 2014. Similar trends were seen in Differential to 100-day MA (%) Shanghai where the traded volume remained above the 150-day moving average during all but six trading sessions. Total traded volume crossed 200 000, which is equivalent to more than a third of the total volume traded in entire calendar year of 2014. Hubei allowances touched 11-month highs and also saw some of the lowest prices in several weeks. The total traded volume touched almost 850 000, equivalent to 11.6 % of the total volume traded in the nine months to December 2014. Shenzhen 2014 emission allowances were also traded in huge numbers. Last month’s volume was 17.5 % of the total volume traded during the five months between August and December 2014. Massive deals and transactions also took place in the CCERs market. Although, some of the biggest ones did not include any compliance entities. BI79/4865/AS Source: ChinaCarbon.net.cn an online media & analytics website that specializes in providing news, content and data on the China carbon market. China- Carbon.net.cn is a trademark of Climate Connect Ltd. EUTR stakeholder consultation open The European Commission (EC) has opened a stakeholder consultation as part of its two year review of the EU Timber Regulation (EUTR). The review aims to assess the EUTR’s functioning and effectiveness in preventing illegally harvested timber or timber products from placement on the EU market. It will consider due diligence systems, administrative consequences for small and mediumsized enterprises (SME) and product coverage. The online survey, ec.europa.eu/environment/consultations/ eutr_en.htm, is open for submissions until 3 July 2015. BI79/4874/AS !
Bioenergy no 3 May 2015
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