STC Market Update 9th September 2019

The STC market continued to edge higher last week without much volatility. After a small drop the previous week following the Victorian announcement, the spot price continued to show strength as it closed the week at $37.35. The week had opened at $37.20.

Despite the stable pricing there wasn’t a lot of trades executed especially later in the week. Most of the action came via the forward market which was extremely busy again and continued to trade in large volumes. There were multiple large trades around $37.50 executed for late 2019 and across 2020. As previously mentioned the spot price historically strengthens in the first quarter as we approach the announcement of the next years renewable energy percentage. Shorter term forwards were similar or slightly higher than the spot.

Around 670,000 STC’s were created last week which was approx 70k lower than the week prior. The number of STC’s listed on the clearing house currently sits at 415,135. This is down another 24k and continues the trend of listings dropping. No movement has been seen at the top of the clearing house list for a long time now and participants are starting to realise the facility is unlikely to be used until at least mid next year. A link to the STC clearing house can be found here.

Our latest pricing for both registered and non-registered STC’s can be found here.