EUROPE POWER-Forward curve contracts fall with fuels and carbon
PARIS, April 3 (Reuters) - European forward curve contracts dropped on Thursday following lower gas, carbon and oil prices after the announcement of sweeping new tariffs by U.S. President Donald Trump that could spark concerns in the manufacturing sector.
The European carbon market is bearish with tariff concerns, uncertainty about potential market reform and technical signals adding to the negative development, with further price falls expected, analysts at Energi Danmark said.
"Further price falls must be expected (on Thursday) as part of the general downtrend," they said, adding that "the (power) market will certainly follow fuels and carbon down, with the fears about the US tariff's consequences for German economy causing some concerns."
Trump's move to slap a 20% tariff on most goods imported from the European Union has intensified a global trade war that threatens to stoke inflation and stall growth.
German year-ahead power TRDEBYZ6 was down 1.5% at 85 euros ($93.42) per megawatt-hour (MWh), as of 0839 GMT, while the French 2026 baseload contract TRFRBYZ6 shed 3.5% to 62 euros per MWh.
Benchmark European carbon permits CFI2Zc1 fell 2.3% to 66.98 euros a metric ton.
On the spot contract side, European day-ahead contracts were split as German wind power supply was expected to fall by about half and drops in French wind supply were buffered by a similar drop in demand.
The German day-ahead baseload power price TRDEBD1 rose 13.1% to 87 euros/MWh, while French baseload power for Friday TRFRBD1 was down 10% at 38.25 euros/MWh.
German wind power output is expected to plummet 6 gigawatts (GW) to 5.9 GW on Friday, while supply in France is seen decreasing by 1.6 GW to 6.3 GW, data compiled by LSEG showed.
Power usage in Germany is set to drop by 1.2 GW to 54.5 GW, while demand in France was seen down 1.1 GW to 47 GW, according to LSEG data.
French nuclear availability fell five percentage points to 68% of the total installed capacity as two reactors went offline for maintenance. POWER/FR
($1 = 0.9098 euros)
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