Market Dynamics Report

JUNE 10 2015

May 2015

Total Market Volume lowest since Dec‐13; API4 & Nordic Power buck this trend; Brokers lose share in NBP and TTF

May continued with April's theme as total Euro Commodity monthly contracts contracted even further to 4.31m. The highs of the first quarter have been replaced with the lowest monthly contracts traded since Dec-13. May-15 represents a 7% decrease vs. April and a 44% decrease vs. the record Mar-15 monthly contracts traded of 7.63m. YTD monthly contracts traded are up 5%, however this increase is driven by the record volumes we saw in the first quarter of 2015 - 10% higher than the corresponding period in 2014. Emissions and Coal saw the largest drops this month with volumes down 15% and 10% respectively.

Emissions volumes were down 15% MoM and 39% YTD. The 314.5 million metric tonnes recorded this month was the lowest volume seen in the emissions market since we began recording.

The coal market as a whole followed suit with the rest of the market this month, with volumes down 10% MoM. This was entirely driven by the largest coal contract in this grouping, API2, where volumes were down 14% MoM. API4 bucked the market trend somewhat this month as volumes were up 23% MoM to 23.6 million metric tonnes. It has been a slow start to the year for API4 with volumes down 37% YTD vs. YTD 2014.

Euro Power volumes were down 5% MoM, with falls across the majority of the regions. French, Spanish and Italian Power were down 17%, 24% and 32% respectively. These drops were partially offset by Nordic Power where volumes increased by 32% MoM. This increased volume saw Nordic Power overtake French Power as the second largest region in Euro Power by volume, behind German Power.

The brokers lost share this month in the two largest Gas hubs; NBP and TTF. In NBP, total brokered market share was down 4% while the brokered market in TTF was down 2%. TTF remains a largely brokered market with 78% broker bilateral share. Exchange executions now make up 44% of NBP market share - just 4% less than broker bilateral share of 48%.

Downloadable Content

Commodities Report 2015 (1MB)

June 2015 Commodities Report (2MB)

Downloadable Content

Commodities Report 2015

June 2015 Commodities Report