German Cal-19 Power Hits Year-To-Date High on Bullish Coal

German Cal-19 baseload delivery reached a year-to-date high of Eur36.95/MWh Monday morning, up 60 euro cent from Friday, on high coal prices, traders said.

Cal-19 baseload last seen at Eur36.95/MWh

European front-year coal up almost $1/mt

EU carbon rises to Eur13.29/mt

The last time the European benchmark contract was assessed this high was on December 29, 2017, S&P Global Platts data showed, when German politics were the main driver.

"Coal prices are picking up strongly," a trader said. "I'd attribute the power price surge more to coal than carbon prices."

A second trader agreed, adding that coal had had two continuously bullish sessions and opened very high this morning.

In recent weeks German far curve prices had been lifted by rallying carbon allowances and become temporarily detached from generating fuel price trends.

However, these have come back into the picture in recent sessions, traders said.

Monday morning front-year coal delivery into Europe was up almost $1 at $78.60/mt while EU carbon allowances for the December were last up 30 euro cent from Friday at Eur13.29/mt.