Platts to launch European carbon-accounted steel price assessments on May 2

Platts, part of S&P Global Commodity Insights, is to launch new carbon-accounted steel price assessments for the European market, effective May 2, 2023.

The new daily assessments, which will complement existing Platts European price offerings for hot-rolled coil steel, will include a European HRC Carbon-Accounted Steel Premium (CASP) and a Northwest Europe HRC Carbon-Accounted Steel Price.

The assessments will reflect trade in HRC with carbon emissions certified by an internationally accepted, independent organization. Market participants will be expected to supply proof of such certification upon request. Trade in steel products using offsets to reduce overall emissions profiles, such as credits sourced from voluntary carbon markets, will not be considered for inclusion in these assessments.

Following industry feedback, the European HRC Carbon-Accounted Steel Premium will 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 will 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 will represent an all-in price for carbon-accounted HRC in that region. The price assessment will consist of the sum of the Platts European HRC Steel Carbon-Accounted Emissions Premium and the existing Platts HRC ex-works Ruhr price assessment (STHRE00). Platts will also publish a conversion in $/mt.

The assessment will be normalized to the following HRC specifications:

In the absence of observable spot market activity, Platts will 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.

Platts is introducing new carbon-accounted steel assessments in alignment with S&P Global Commodity Insights' strategic focus on offering ESG-related commodities pricing. The new assessments respond 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 will 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 originally proposed the launch of the two new assessments on March 16 in a subscriber note available at:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/031623-platts-proposes-european-carbon-accounted-steel-price-assessments

Platts has considered all feedback received and will continue to monitor market developments.

Please send any comments to ferrous_emea@spglobal.com and pricegroup@spglobal.com. 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.