LONDON, May 9, 2023
/PRNewswire/ -- Platts of S&P Global Commodity Insights, the
leading independent provider of information, analytics and
benchmark prices for the commodities, energy and energy transition
markets, has launched two new daily European carbon-accounted
hot-rolled coil (HRC) steel price assessments to help bring greater
transparency to the metals market's decarbonization
journey.
The new daily assessments -- the Platts European HRC
Carbon-Accounted Steel Premium (CASP) and the Platts Northwest
Europe HRC Carbon-Accounted Steel Price -- mark Platts'
first-ever carbon-accounted pricing offering for the ferrous supply
chain. They complement Platts European price offerings for standard
HRC and the pre-existing suite of daily low-carbon and zero-carbon
primary aluminum and low-carbon aluminum billet assessments.
The Platts European HRC Carbon-Accounted Steel Premium
(CASP) assessment reflects:
- any differential achieved for spot sales of HRC on an ex-works
basis, with total accounted carbon emissions of 2.1 metric tons
(mt) of CO2, or less, for every metric ton of steel produced.
- trade in HRC with carbon emissions certified by internationally
accepted, independent organizations. Market participants are
expected to supply proof of such certification upon request.
The Platts Northwest Europe HRC Carbon-Accounted Steel
Price assessment represents:
- an all-in price for carbon-accounted HRC in that region. The
price assessment is the sum of the Platts European HRC Steel
Carbon-Accounted Emissions Premium added to the existing Platts HRC
ex-works Ruhr price assessment.
- A normalization to European Norm EN 10025-2:2004/ Grade S235J
quality specifications, and reflect ex-works Ruhr shipments of at
least 100 mt, within 4-10 weeks, in
Euros/mt on delivery.
Christopher Davis,
Global Lead for Carbon-Accounted Metals, S&P Global Commodity
Insights, said: "The carbon-accounted metals space is
one that's evolving rapidly, but is also lacking transparency and
relevant price references similar to those Platts provides for
standard metals. These new assessments will help shed light on
value and pricing trends, while bringing clarity to an opaque
market."
The new price references 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. 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.
While energy transition is increasingly a key part of global
metals and mining companies' corporate strategies, a vacuum of
standards has hampered market participants in their efforts to
define, quantify and understand the market value of
carbon-accounted steel.
Anna Crowley, Global Head of
Metals Pricing, S&P Global Commodity Insights,
said: "Through Platts' carbon-accounted steel price
assessments, market participants will get daily snapshots of this
important emerging market. Such illumination should aid across the
value chain, from producers seeking acknowledgement of the advances
made in reducing carbon at the steelmaking stage, to end-users
demanding material certified by suppliers that it meets certain
decarbonization criteria, and beyond."
The new price assessments are also an augmentation that will
allow the industry and marketplace to leverage expertise and price
assessing capabilities across commodities and voluntary carbon
sectors, allowing deeper and broader insights with which to
navigate the global energy transition.
Access details of Platts' price assessments methodology and data
prioritization here:
https://www.spglobal.com/commodityinsights/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/platts-assessments-methodology-guide.pdf
The carbon-accounted steel price assessments may be found in
S&P Global Commodity Insights products and services, including:
Platts Ferrous Metals Alert pages, Platts Steel Markets
Daily, the SBB Daily Briefing, Steel Price
Report, Platts Dimensions Pro, Platts Market
Center, and in the Platts price database. The assessments are
featured on page PMA 1200 alongside Platts' daily European HRC
assessments.
Media Contacts
EMEA: Paul
Sandell, + 44 (0)7816 180039, paul.sandell@spglobal.com
Americas: Kathleen Tanzy, +1
917-331-4607, kathleen.tanzy@spglobal.com
Asia: Melissa Tan, +65-6597-6241,
melissa.tan@spglobal.com
About S&P Global Commodity Insights
At S&P Global Commodity Insights, our complete view of
global energy and commodities markets enables our customers to make
decisions with conviction and create long-term, sustainable
value.
We're a trusted connector that brings together thought leaders,
market participants, governments, and regulators and we create
solutions that lead to progress. Vital to navigating commodity
markets, our coverage includes oil and gas, power, chemicals,
metals, agriculture, shipping and energy transition. Platts®
products and services, including the most significant benchmark
price assessments in the physical commodity markets, are offered
through S&P Global Commodity Insights.
S&P Global Commodity Insights is a division of S&P
Global (NYSE: SPGI). S&P Global is the world's foremost
provider of credit ratings, benchmarks, analytics and workflow
solutions in the global capital, commodity and automotive markets.
With every one of our offerings, we help many of the world's
leading organizations navigate the economic landscape so they can
plan for tomorrow, today. For more information visit
https://www.spglobal.com/commodityinsights.
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SOURCE S&P Global Commodity Insights