Launch of European reduced carbon emissions steel prices

Fastmarkets’ reduced carbon emissions, domestic flat-rolled differential ex works Northern Europe will be assessed weekly against Fastmarkets’ established Northern European hot rolled coil (HRC) index.

And a daily inferred reduced carbon emissions price will be calculated based on the daily Fastmarkets HRC index and the reduced carbon emissions differential to provide real-time transparency.

Reduced carbon emissions flat steel prices will capture the differential between traditional flat-rolled steel prices and prices for steel produced with low carbon missions (including Scope 1 and 2) of 1.40-1.95 tonnes of CO2 per tonne of steel.

Most integrated flat steelmakers in Europe steel use blast furnace/basic oxygen furnace (BOF) processing, but reduce their CO2 emissions to comply with the strict EU regulations and sales of steel with a 20-30% reduction in carbon emissions now represent a tangible segment of the market and can attract significant premiums.

The price specifications are as follows:

MB-STE-0911 Reduced carbon emissions flat steel differential to HRC Northern Europe, €/tonne
Quality: Steel produced with Scope 1 and 2 emissions of 1.40-1.95 tonne CO2 per tonne of steel
Quantity: Minimum 10 tonnes
Location: Ex-works northern Europe
Timing: Open
Unit: EUR/tonne
Publication: Weekly, Thursday 4pm London time

MB-STE-0912 Reduced carbon emissions flat steel domestic daily inferred, Northern Europe, €/tonne
Quality: Steel produced with Scope 1 and 2 emissions of 1.40-1.95 tonne CO2 per tonne of steel
Quantity: Minimum 10 tonnes
Location: Ex-works northern Europe
Timing: Open
Unit: EUR/tonne
Publication: Daily, 4pm London time
Notes: This price is calculated by adding the weekly Reduced carbon emissions flat steel differential (MB-STE-0911) to the daily Northern Europe HRC index (MB-STE-0028).

These prices are part of the 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 Julia Bolotova by email at: pricing@fastmarkets.com. Please add the subject heading: “FAO: Julia Bolotova re: European Green Steel.”

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/about-us/methodology.