Platts proposes to lower CO2 threshold for European carbon-accounted HRC assessments

Platts, part of S&P Global Commodity Insights, proposes to lower the CO2 threshold of its European carbon-accounted hot-rolled coil (HRC) spot price assessments to 1 mtCO2-equivalent (mtCO2e) or less for every metric ton of steel produced, from 2.1 mtCO2e or less, effective Sept. 6.

This proposal follows feedback from market participants on carbon -accounted HRC traded in Europe and also considers information collected by Platts since the assessments' May 2023 launch. Based on market data published by Platts over the last 14 months, it was observed that more than 80% of carbon-accounted HRC data reflected a maximum CO2 threshold of 1 mtCO2e.

The following assessments would be affected:

The European HRC Carbon-Accounted Steel Premium (CASP) reflects carbon emissions-related surcharges or upcharges implemented by market participants for material with total certified emissions at a specified threshold, currently 2.1 mte or less of CO2 per mt of steel.

The assessment includes 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.

Carbon emissions should be certified by an internationally accepted independent organization. Market participants are 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, are not considered for inclusion in the assessment.

The Northwest Europe HRC Carbon-Accounted Steel Price assessment represents an all-in price for carbon-accounted HRC in that region. The assessment consists of the sum of the CASP and Platts HRC ex-works Ruhr price assessment (STHRE00).

Platts European HRC assessments are published in the SBB Daily Briefing, Steel Markets Daily, Steel Price Report, on Platts Metals Alert on fixed page PMA1200 and in the Platts price database.

Platts invites feedback on this proposal to ferrous_emea@spglobal.com and pricegroup@spglobal.com by August 9, 2024 .

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.