April 2019: Korean Market UpdateDOWNLOAD
Korea Emission Trading Scheme
ETS Monthly Auction
The fourth auction sold off a total of 1,590,000 tons of allowances to nine companies in the price of KRW 26,400.
Since the third auction, the bidding limit has been reduced from 30% to 15% and the bid price calculation was also lowered. However, the gap between the secondary market's KAU18 closing price and the auction price has gradually widened due to lack of market supply.
KAU18 price has been gradually rising since late March, recording another high of KRW 29,000 on April 26, 2019.
With the compliance deadline nearing, KAU18 prices are likely to rise further and some surplus are expected to come into the market amidst high selling prices.