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Market Dynamics Report

MARCH 12 2015

February 2015

Battle for Coal heats up again; UK Gas volumes highest since Feb-12; and another record in TTF volume.

February saw the continuation of volume growth in the Euro Commodities markets – with all commodity groupings except Coal showing increases in volume MoM.

Commodity Class MoM% Change
Emissions +6%

Coal

-25%
UK Gas +3%
Euro Power +1%
Euro Gas +10%
UK Power +7%

Euro Gas volumes grew strongly to 2,074 TWh during Feb-15. This was mainly driven by TTF, which saw another monthly volume record at 1,686 TWH, up 166 TWh vs. Jan's previous record. During the month the Dutch government announced a limit to gas production in Groningen for 2015 due to concern that gas extraction is causing earthquakes in the region, which caused spikes in the price of both TTF and NBP. The market share split for TTF in February was 81% broker bilateral / 5% broker cleared / 14% exchange executed, with the cleared market increasing 2% vs. Jan-15.

UK Gas volumes continued their January growth, to finish February at 2,125 TWh – this is the second highest monthly volume we have seen since we began reporting - 207 TWh shy of the 2,332 TWh February 2012 record. UK Gas is really coming back in terms of volume after 2013 which saw volumes drop 15% vs. 2012. NBP prices moved in line with TTF around the Dutch government's announcement. This coupled with Centrica announcing an unplanned storage outage a week later caused the NBP front month price on ICE to finish 11% up MoM.

February saw the battle for Coal take a different turn, resulting in a market share shift in the cleared market. ICE gained 11% total API2 & API4 cleared market share, to end the month at 36%. Total traded volume in API2 & API4 was down 25% MoM after the significantly large January 2015 volume in API2. Watch this space as the battle for Coal continues into 2015.


Downloadable Content

Report Feb 2015 (847KB)

Downloadable Content

File:
Report Feb 2015