Platts lowers CO2 threshold for European carbon-accounted hot-rolled coil assessments

Platts, part of S&P Global Commodity Insights, has lowered the CO2 threshold of its European carbon-accounted hot-rolled coil (HRC) spot price assessments to 1.0 mtCO2-equivalent (mtCO2e) or less for every metric ton of steel produced, from 2.1 mtCO2e or less, effective Sept. 6.

The revised threshold follows feedback from market participants on carbon-accounted HRC traded in Europe and considers information collected by Platts since the launch of the assessments in May 2023. Market data published over that timeframe showed that more than 80% of carbon-accounted HRC data reflected a maximum CO2 threshold of 1.0 mtCO2e.

The change affects the following assessments:

Platts originally proposed the specification change on July 29 in a subscriber note available at:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/072924-platts-proposes-to-lower-co2-threshold-for-european-carbon-accounted-hrc-assessments

Following market consultation, Platts communicated its decision to amend the assessment specification on Aug. 14 and the relevant note can be found at:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/081424-platts-to-lower-co2-threshold-for-european-carbon-accounted-hot-rolled-coil-assessments

Platts European HRC Carbon-Accounted Steel Premium (CASP) reflects carbon emissions-related surcharges or upcharges implemented by market participants for material with total certified emissions of 1.0 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 HRC 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.

Send questions and comments to ferrous_emea@spglobal.com and pricegroup@spglobal.com.

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