“I still don’t see any bottom to this market.”
EU carbon prices fell to their lowest ever level on Wednesday as the euro currency and equities slid on renewed fears over the bloc’s debt crisis and oil prices tanked after producers promised to maintain high output.
The ICE ECX December 2011 EUA contract fell 73 cents to an all-time low of 6.30 euros, down 10.4 percent on Tuesday’s 7.03-euro settlement.
By 16.30 GMT, the contract had recovered slightly to 6.41 euros on healthy turnover of around 15 million units.
The drop sends the contract into unchartered territory, falling well below its previous low of 6.77 euros on December 6 as market traders saw few signs of respite in the EU economy to boost demand for emission permits.
“I still don’t see any bottom to this market,” said one carbon trader, who said any positive sentiment from this weekend’s landmark U.N. climate summit in Durban was purely psychological as it brought no increase in demand for permits.
“It’s clear that Durban didn’t help, and Canada’s announcement of its Kyoto Protocol withdrawal tells you what little countries think about international agreements,” he added. [Emphasis added]