Platts, part of S&P Global Commodity Insights, is proposing new carbon-accounted steel price assessments for the European market, effective from May 2, 2023.
The new daily assessments, which would complement existing Platts European price offerings for hot-rolled coil steel, would include a European HRC Carbon-Accounted Steel Premium (CASP) and a Northwest Europe HRC Carbon-Accounted Steel Price.
The assessments would reflect trade in HRC with carbon emissions certified by an internationally accepted, independent organization. Platts is inviting feedback regarding accepted certifying organizations. Market participants would be expected to supply proof of such certification upon request.
The European HRC Carbon-Accounted Steel Premium would reflect any differential achieved for the spot sale of hot-rolled steel on an ex-works basis, with total accounted carbon emissions of 2.1 mt of CO2, or less, for every metric ton of steel produced.
The CASP total would include emissions from direct, indirect and associated upstream and downstream activities such as mining and processing of steelmaking raw materials, hot metal production, steel rolling and associated transportation and logistics and reflect carbon emissions-related surcharges or upcharges implemented by market participants.
The Northwest Europe HRC Carbon-Accounted Steel Price assessment would represent an all-in price for carbon-accounted HRC in that region. The price assessment would be the sum of the Platts European HRC Steel Carbon-Accounted Emissions Premium added to the existing Platts HRC ex-works Ruhr price assessment (STHRE00). Platts would also publish a conversion to $/mt.
The assessment would be normalized to the following HRC specifications:
In the absence of observable spot market activity, Platts may consider other verifiable data reported. Platts may also observe direct market activity as well as the effect of movements in related markets through spread differentials, for example.
Trade in steel products using offsets to reduce overall emissions profiles, such as credits sourced from voluntary carbon markets, would not be considered for inclusion in these assessments.
Platts is proposing these new carbon-accounted steel assessments in alignment with S&P Global Commodity Insights' strategic focus on offering ESG-related commodities pricing. The proposal is in response to requests from market participants for tools to help quantify cost and manage risks and opportunities associated with a growing focus on carbon-reduction strategies and increasing global regulation.
They would complement previously launched carbon-accounted price assessments focused on the aluminum value chain, including primary aluminum and aluminum billet.
Platts European HRC assessments are published in the SBB Daily Briefing, Steel Markets Daily, Steel Price Report, on Platts Metals Alert on fixed page PMA 1204 and in the Platts price database.
Platts welcomes feedback on its proposed carbon-accounted steel offerings.
Please send all comments to ferrous_emea@spglobal.com and pricegroup@spglobal.com by March 31, 2023. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available to the public upon request.