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:
US HRC-MW Shredded Spread
US HRC-MW #1 Busheling Spread
China HRS101 Scrap : Iron Ore Ratio
US Pig Iron New Orleans : MW #1 Busheling Ratio
Black Sea Pig Iron : Turkey HMS 80:20 Ratio
US Aluminum MWT-UBCs Spread
US Aluminum MWT-A380 Spread
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 6th 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.
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SOURCE S&P Global Platts