Seasonal NOx allowance prices fell sharply Thursday as US Cross-State Air Pollution Rule market players made deals ahead of a flood of banked allowances coming into the market next week.
Brokers reported 2017 Seasonal NOx allowances traded down to $200/st Thursday, and deals for 2018 Seasonal NOx allowances were made as low as $130/st.
The US Environmental Protection Agency sent a letter to market participants this week reminding them that banked Seasonal NOx allowances from 2015 and 2016 would be converted for 2017 compliance starting Monday at a penalty ratio near 3.5 to 1, and a source said the note served as a catalyst to deal.
S&P Global Platts on Thursday assessed 2017 Seasonal NOx allowances at $200/st, down $100 from last week, based on the day's last trade.
Seasonal NOx prices have dropped $140/st in the last three weeks.
No other interest was heard for CSAPR allowances this week, keeping prices unmoved.
Platts assessed Annual NOx allowances at $2.75/st, Group 1 SO2 allowances at $2.50/st and Group 2 SO2 allowances at $3.25/st, all unchanged, based on broker marks.
