Emissions prices unchanged in quiet US CSAPR market

Sources reported no deals and few bids and offers this week in the US Cross-State Air Pollution Rule emissions market.

Brokers said interest for 2017 Seasonal NOx allowances remains slim following a deal last week at $525/st. A market player said the bid-offer range has stayed consistent at $500/st at $550/st and sides have little motivation to deal.

S&P Global Platts on Thursday assessed Seasonal NOx allowances at $525/st, unchanged from last week, based on broker marks.

A source noted that the US Environmental Protection Agency could soon release its ozone conversion ratio for Seasonal allowances rolled over into 2017. Uncertainty on what the final conversion rate will be has kept many from entering the market, the source said.

But another market participant said the announcement would probably not come until closer to the start of May, adding that a 4-to-1 conversion ratio was likely.

No interest was heard this week for the other three CSAPR allowances, keeping pricing unmoved.

Platts assessed Annual NOx allowances at $4/st, Group 1 SO2 allowances at $2.50/st and Group 2 SO2 allowances at $3.25/st, all unchanged, based on broker marks.