Launch of China domestic reduced carbon emissions flat steel prices

Fastmarkets is launching reduced carbon emissions flat steel prices for China’s domestic market, starting from Friday October 11.

The prices reflect the rising demand from market participants for green steel price differentials given the global decarbonization drive to make steel production sustainable and emerging carbon border measures

Fastmarkets’ Flat steel reduced carbon emissions differential, exw China, will be assessed every two weeks against the Fastmarkets’ established Eastern China domestic hot rolled coil (HRC) price assessment.

And an inferred China domestic reduced carbon emissions flat steel prices will be calculated based on the daily Fastmarkets HRC price assessment and the reduced carbon emissions flat steel differential to provide real-time transparency.

The price specifications are as follows:

MB-STE-0922 Flat steel reduced carbon emissions differential, exw China, yuan/tonne
Quality:
 Steel produced with Scope 1, 2 and 3 emissions of 1.10-1.40 tonnes CO2 per tonne of steel
Quantity: Minimum 10 tonnes
Location: Ex-works China
Timing: Open
Unit: Yuan/tonne
Publication: Every two weeks, Friday, 5-6pm Shanghai time

MB-STE-0923 Flat steel reduced carbon emissions, daily inferred, exw China, yuan/tonne
Quality:
 Steel produced with Scope 1, 2 and 3 emissions of 1.10-1.40 tonnes CO2 per tonne of steel
Quantity: Minimum 10 tonnes
Location: Ex-works China
Timing: Open
Unit: Yuan/tonne
Publication: Daily, 5-6pm Shanghai time
Notes: This price is calculated by adding the fortnightly reduced carbon emissions flat steel differential (MB-STE-0922) to the daily Eastern China HRC price assessment (MB-STE-0154).

The reduced carbon emissions flat steel prices will capture the differential between traditional flat-rolled steel prices and prices for steel produced with lower carbon emissions (including Scope 1, 2 & 3) of 1.10-1.40 tonne CO2 per tonne of steel.

All production methods and raw materials will be considered, including scrap-based production and steel made using hydrogen-reduced iron.

These prices are part of the Fastmarkets steel price package.

To provide feedback on these prices or if you would like to provide price information by becoming a data submitter to these prices, please contact Zihuan Pan by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Zihuan Pan re: China Reduced Carbon Emissions Flat Steel Prices.” Please indicate if comments are confidential.

Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

To see all Fastmarkets pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.

What to read next
Full details of the prices covered by this consultation can be found here: https://www.fastmarkets.com/insights/open-consultation-on-annual-methodology-review-for-global-pulp-pricing-notice/ During the consultation, Fastmarkets requested comments on whether current discount levels for US market pulp have grown too high and invited open-ended feedback on potential remedies moving forward. Feedback from the industry was mixed. Potential remedies suggested by the industry included […]
Fastmarkets has corrected the rationale for its MB-CO-0021 cobalt hydroxide payable indicator, min 30% Co, cif China, % payable of Fastmarkets’ standard-grade cobalt price (low-end), which was published incorrectly on Wednesday July 2 due to a reporter error.
Fastmarkets has launched 12 weekly BeZero rated voluntary carbon price assessments, covering Reducing Emissions from Deforestation and Forest Degradation (REDD+), Afforestation, Reforestation and Revegetation (ARR), and Improved Forest Management (IFM) on Wednesday July 2. The new prices aim to improve transparency in the voluntary carbon market and highlight the impact that ratings have on the […]
The corrections are as follows: AG-WHE-0028 Wheat 13.5% FOB Canada CWRS $/mt Incorrect prices: M1 July $279.00 per tonne M2 August $53.75 per tonne M3 September $55.50 per tonne M4 October $48.25 per tonne M5 November $48.25 per tonne M6 December $50.25 per tonne M7 January $41.00 per tonne M8 February $39.25 per tonne M9 March […]
The Wheat 10% FOB US Pacific Northwest SW market typically trades on an outright price basis instead of as a premium to Chicago Mercantile Exchange futures. For that reason, Fastmarkets proposes to discontinue the AG-WHE-0025 Wheat 10% FOB US Pacific Northwest SW Premium c$/bu assessment while keeping its AG -WHE-0027 Wheat 10% FOB US Pacific Northwest SW […]
The prices are: The changes were made in order to ensure that the liquidity and price volatility in these markets is adequately captured. The changes were welcomed by market participants seeking more granular coverage and increased transparency. In the UK, the decline of domestic steelmaking means the scrap market is dominated by exports. Exporters told Fastmarkets that […]