Platts proposes to launch two European carbon-accounted long steel assessments

Platts, part of S&P Global Commodity Insights, proposes to launch weekly price assessments for both carbon-accounted rebar and carbon-accounted medium sections, effective Sept. 11, 2024.

The new assessments, which would complement existing Platts European price offerings for standard rebar and medium sections, would include a European Rebar Carbon-Accounted Steel Premium (Rebar CASP), a European Medium Sections Carbon-Accounted Steel Premium (Medium Sections CASP), a Northwest Europe Rebar Carbon-Accounted Steel Price and a European Medium Sections Carbon-Accounted Steel Price.

The new carbon-accounted assessments would also complement Platts' existing European carbon-accounted assessments for hot-rolled coil steel, the HRC Carbon-Accounted ex-works Ruhr steel price and the HRC CASP, which were the first of their kind when launched in May 2023.

The European rebar and medium sections carbon-accounted steel premiums would reflect any differential achieved for the spot sale of rebar and medium sections, with total accounted carbon emissions of 0.6 metric tons of CO2-equivalent, or less, for every metric ton of steel produced.

The assessments would include emissions from direct, indirect and associated upstream and downstream activities such as 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.

Carbon emissions should be certified by an internationally accepted independent organization. Market participants would be expected to supply proof of such certification upon request.

The carbon-accounted steel price assessments would represent all-in prices for carbon-accounted rebar and medium sections in that region consisting of the sum of the European Carbon-Accounted Steel Premium added to the existing Platts rebar ex-works Northwest Europe price assessment (STCBE00) medium sections DDP Europe price assessment (SB01160).

The new Rebar Carbon-Accounted Steel Price assessments would be normalized to the following specifications:

The new Medium Sections Steel Price assessments would be normalized to the following 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 Commodity Insights' strategic focus on offering ESG-related commodities pricing. The proposal is in response to the growing market for lower carbon emission steel and 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 steel and the aluminum value chain, including primary aluminum and aluminum billet.

The proposed assessments would be published on Platts Metals Alert pages PMA1263 and STL1263, Platts Steel Price Report, Steel Markets Daily, World Steel Review and in the Platts price database.

Please send all comments, feedback and questions to ferrous_emea@spglobal.com and pricegroup@spglobal.com by Sept. 2.

For written comments, please provide a clear indication if they 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 upon request.