Proposal to amend carbon emission specifications for reduced carbon steel assessments

The proposed change would reduce the maximum carbon emission content for both prices to 1.8 tonnes of CO2 per tonne of steel, down from 1.95 tonnes. This will affect the methodology specifications of the following prices:

The proposed new specifications are shown below, with the changes in italics:
MB-STE-0911 Flat steel reduced carbon emissions differential, exw Northern Europe, € per tonne
Quality: Steel produced with scope 1,2,3 emissions of 1.4-1.8 tonnes of CO2 per tonne of steel
Quantity: minimum 10 tonnes
Location: Ex-works northern Europe
Timing: Open
Unit: EUR/tonne
Publication: Weekly

MB-STE-0912 Flat steel reduced carbon emissions, daily inferred, exw Northern Europe, € per tonne
Quality: Steel produced with scope 1,2,3 emissions of 1.4-1.8 tonnes of CO2 per tonne of steel
Quantity: minimum 10 tonnes
Location: Ex-works northern Europe
Timing: Open
Unit: EUR/tonne
Publication: Daily
Notes: This price is calculated by adding the weekly Reduced carbon emissions flat-rolled, differential to the daily Northern Europe HRC index (MB-STE-0028).

The proposed change is in response the rapid development in the European market for reduced carbon steel. It represents a notable shift since the reduced carbon steel prices were launched in January 2024, when the threshold was set at 1.40-1.95 tonnes of CO2 per tonne of steel.

Data reported to Fastmarkets for its reduced carbon steel assessment since the January launch shows that the majority of transactions related to material with emissions no higher than 1.8 tonnes of CO2 per tonne of steel.

The consultation period for this proposed amendment starts on May 14, 2024, and will end on June 14, 2024. The amendment will then take place, subject to market feedback, on June 20, 2024.

To provide feedback on these prices, or if you would like to provide price information by becoming a data submitter to these assessments, please contact Julia Bolotova by email at: pricing@fastmarkets.com. Please add the subject heading: “FAO: Julia Bolotova re: European reduced carbon 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/about-us/methodology.