STC Market Update 5th August 2019

The STC price softened last week as we entered the first week after the end of the quarter two surrender period. The spot market opened at $37.00 but due to a lack of buying interest and a reasonable level of people still looking to sell the price was quickly pushed down to the mid 36’s. It went as low as $36.30 during the middle of the week before recovering slightly to close at $36.60. The end of the week was relatively quiet with only a handful of trades reported. STC submissions to the REC Registry were approx 670,000, up 20k from the prior week and continued the consistent level of creations over recent months.

There were a number of large volume forwards traded last week for late 2019 and early 2020. They were around the $37.00 level which shows confidence in the market above the current spot level. It will be interesting to see now if the spot price continues to drift lower or will stabilise for the next couple of months. Interest in medium term forward contracts suggests the market will remain relatively stable and may even push higher over the coming months but it could also continue to track lower in the short term. The number of STC’s listed on the clearing house currently sits at 471,457, up approx 10k from the start of last week.

The link to the STC clearing house can be found here:

Latest pricing for both registered and non-registered STC’s can be found via the following link: