LONDON: Nordic power prices fell across the board on Friday on weak consumption and healthy capacity, but analysts said the market was still overvalued.
Nordic power prices for baseload (24 hours) delivery the next working day were trading at 32.90 euros ($43.54) per megawatt-hour (MWh) at 1100 GMT on Friday, their lowest level since mid-July.
"Friday's bid/asks indicate that prices will maintain what we consider a surprisingly high level despite the low weekend consumption, slightly higher wind power output, high imports from the continent and large amounts of expected inflow on Sunday," analysts at Thomson Reuters Point Carbon said.
Baseload prices for delivery next week and throughout 2014 were at two week lows of 33.90 and 37.20 euros a MWh respectively.
Traders said that prices for next year delivery had been pulled down by lower benchmark German power and API2 2014 coal prices, which both hit multi-year lows this week.
"Those are two important benchmarks for the forward curve down significantly, so I'd expect that to reflect in the Nordic forward curve as well," one power trader said.
Traders and analysts said that prices could drop further still. A survey of around 30 traders and analysts showed that German 2014 baseload and API2 2014 coal prices could drop to 32 euros per MWh and $74.40 per tonne respectively, down from 36.45 euros and $83.70 currently. ($1 = 0.7557 euros) (Reporting by Hen-Reuters
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