WELLINGTON: New Zealand carbon permits were marginally softer this week, closing down 7 NZ cents at NZ$4.35 ($3.4213) on Friday, with the market largely trading sideways on small volumes, as it awaits new momentum and direction.
Spot New Zealand Units (NZUs) have settled below the 13-week highs touched before the Sept.
20 election, which saw the National Party-led government comfortably return to power, putting paid to any chance of major changes to the country's emissions trading scheme.
At Friday's close, the market was offered at NZ$4.45.
"It's very flat, there's been some small trading on the bid side with some natural emitters buying at NZ$4.30, not large volumes, just some small guys coming through dealing small lots," said Daniel Crawford of OM Financial.
He said any emitters needing to buy credits now would be getting cheap UN offsets, which are still usable until the end of the year, after which only NZUs will be accepted to meet targets.
"It could be into 2015 before we see fundamental demand," Crawford said, adding the local market would likely trade sideways through the end of the year.
($1 = 1.2715 New Zealand dollar)
Comments
Comments are closed.