Spot Market: Germany - Germany tracks trends at TTF; curve activity picks up
There was no reason for the German hubs to take a different road from the TTF. Prices gained value across the board at the EGT and the BEB, following bearish trends earlier in the month. Traders who had predicted that the spread with the Dutch hub would narrow this summer were generally proven right.
The TTF and EGT spot traded flat. EGT August dealt at parity with the Dutch, while at the BEB, both Day-ahead and August were generally pegged a touch higher than the TTF. The German prompt was bearish in the middle of the month but rebounded later. By month end, prompt and monthly products were trading well above €9/MWh.
Activity was mostly prompt-focussed, especially at the BEB. However, there was more curve trading in the past fortnight than at the beginning of July, although liquidity remained generally limited. October, the two front seasons as well as the annual contracts were seen trading sporadically at E.ON.
The premiums to the TTF on the EGT longer-dated products were still pegged below €0.45/MWh. Towards the end of July, spreads were assessed marginally lower, at €0.40/MWh for the annual contracts.
Echoing the trend at the TTF, Winter ’09 was trading at approximately €0.20/MWh below Summer ’10.
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