S&P Global Platts to Publish New Low-Carbon Metals Spreads, Ratios

Rhea-AI Summary

S&P Global Platts has launched eight new global low-carbon metals spreads and ratios, expanding its carbon-accounted price offerings. Responding to market demands, these tools aim to quantify costs and manage risks in the evolving carbon-reduction landscape. They are based on Platts assessments of key materials like hot-rolled steel and aluminum across major regions, aiding producers and end-users in understanding the market value of low-carbon metals. This launch follows recent initiatives in low-carbon aluminum pricing.

Positive

• Launch of eight new global low-carbon metals spreads and ratios enhances product offerings.
• New tools address market demands for transparency in low-carbon material pricing.
• Supports the industry's efforts to meet increasing ESG targets.

Negative

• None.

NEW YORK, Aug. 13, 2021 /PRNewswire/ -- S&P Global Platts ("Platts"), the leading independent provider of information and benchmark prices for the commodities and energy markets, today announced it has launched a suite of eight new global low-carbon metals spreads and ratios as part of its expanded carbon-accounted price offerings.  

These new calculated spreads and ratios, underpinned by existing Platts assessments in hot-rolled steel, pig iron, scrap, iron ore and aluminum from the US, China, Turkey and the Black Sea region, align with Platts' strategic focus on offering carbon-accounted commodities pricing information. Their launch is in response to market participants' requests for tools to help quantify costs, manage risk and spot opportunities associated with the expansion of carbon-reduction strategies and increasing global regulation.

Ian Dudden, Global Pricing Director for Metals and Agriculture, S&P Global Platts, said: "Like much of the marketplace, metals and mining companies are embracing ESG strategies worldwide, but have been doing so amidst a dearth of standards, making it difficult, if not impossible, to define, quantify and understand the market value of low-carbon metals. The aim of our new spreads and ratios is to help producers understand the value of reduced carbon at the smelting and melting stage, end-users to understand the value of input materials made with renewable energy or from low-carbon sources, and help bring transparency to the low-carbon metals space and energy transition." 

New Platts Price Spreads and Ratios:

Frequency	Description
Daily	US HRC-MW Shredded Spread
Daily	US HRC-MW #1 Busheling Spread
Daily	China HRS101 Scrap : Iron Ore Ratio
Weekly	US Pig Iron New Orleans : MW #1 Busheling Ratio
Weekly	Black Sea Pig Iron : Turkey HMS 80:20 Ratio
Weekly	US Aluminum MWT-UBCs Spread
Bi-Weekly	US Aluminum MWT-A380 Spread
Bi-Weekly	US Aluminum MWT-Mill-grade MLCCs Spread

These spreads and ratios, incorporating some of the most liquid markets and widely used finished products and feedstocks, can help compare lower- and higher-carbon metals inputs. They can inform feedstock decisions, such as the usage of various scrap grades or other metallics, as the industry seeks to reduce emissions during production and meet increasingly stringent ESG targets. They signify another step in Platts' continued expansion of new price assessments, data, insights and analytics for the rapidly growing low-carbon metals space.

These price spreads and ratios follow the April 6^th start of Platts' low-carbon aluminium price (LCAP) and Zero-Carbon Aluminum Price (ZCAP) for European Good Western-origin aluminum ingot and complement Platts' existing regional price offerings for high-grade primary aluminium (P1020).

Platts continues to research additional carbon-accounted price and cost references throughout the metals and raw materials value chains. 

Media Contacts:
Americas: Kathleen Tanzy + 1  917-331-4607, Kathleen.tanzy@spglobal.com 

About S&P Global Platts
At S&P Global Platts, we provide the insights; you make better informed trading and business decisions with confidence. We're the leading independent provider of information and benchmark prices for the commodities and energy markets. Customers in over 150 countries look to our expertise in news, pricing and analytics to deliver greater transparency and efficiency to markets. S&P Global Platts coverage includes oil and gas, power, petrochemicals, metals, agriculture and shipping.

S&P Global Platts is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.platts.com.

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SOURCE S&P Global Platts

FAQ

What are the new products launched by S&P Global Platts?

S&P Global Platts has launched eight new global low-carbon metals spreads and ratios.

What is the purpose of the new low-carbon metals spreads and ratios?

These tools aim to help quantify costs, manage risks, and identify opportunities related to carbon-reduction strategies.

When was the announcement made about the new low-carbon metals products?

The announcement was made on August 13, 2021.

Which materials are included in the new low-carbon metals offerings?

The offerings include pricing assessments for hot-rolled steel, pig iron, scrap, iron ore, and aluminum.

How do the new spreads and ratios impact ESG compliance?

They provide insights that can help metals producers and end-users understand and achieve their ESG compliance goals.