Turkish spot power market heats up on warm weather, low wind

admin publish 2015/8/19 14:21:32

The Turkish spot power market remained buoyant in the week to Tuesday on another week of hot weather throughout the nation, with well above average temperatures fueling demand.

PMUM-traded day-ahead power closed at Lira 181.13/MWh (Eur56.82/MWh) Tuesday, down around Lira 4 on the day but comfortably above the latter half of week 33 where prices were stable around the Lira 170/MWh mark.

Low wind generation and high temperatures were described as the short-term market drivers by a trading source, adding that conventional generation was running at normal levels, with nearly all plants in the system.

Month-ahead power edged up to its highest closing price since the start of August this week, assessed Lira 1.30 higher on the day at Lira 143.40/MWh Monday, 40 kurus above the highest assessed price so far this month, with interest heard at a similar price midday London time Tuesday.

Liquidity on the front-month market was low this week, in which prices gained steadily from Wednesday's Lira 142.50/MWh closing assessment.

Month-ahead power in the first half of August has shown greater stability than in July, Platts pricing data showed, attributed to the end of summer maintenance schedules by trading sources.

Turkey is set for another week of above average temperatures, according to the latest CustomWeather forecasts, with high temperatures set to top 35 degrees C in Antalya, Izmir and Adana in the coming week.

Dry weather is forecast to persist, with just 6 mm of rainfall forecast across six major cities, the data showed.

In the steel market, Platts daily assessment for its benchmark steel product, reinforcing bar -- an indicator of industrial consumption in the electricity market -- was flat in the week to Tuesday as both import and export demand was described as "really terrible" by an industry source.

Turkish export rebar was assessed at $390/mt FOB Turkish ports Monday, unchanged on the week but down $12.50/mt since the start of August and slumping $115/mt compared to the start of the year.