The steel market may not grab headlines like AI or quantum anything, but one corner of the sector has quietly undergone a decade-long transformation. S&P Global Energy—formerly S&P Global Commodity Insights—is marking the ten-year anniversary of its Platts steel scrap and rebar benchmarks becoming the settlement reference for two major London Metals Exchange (LME) futures contracts. And if trading volumes are any indication, the recycled steel economy is no longer niche. It’s becoming a risk-managed, globally indexed commodity class.
Back on November 23, 2015, the LME launched scrap and rebar futures tied directly to Platts’ benchmarks:
• Platts HMS 1/2 80:20 CFR Turkey, the globally watched landing-price assessment for scrap flowing into Turkey’s melting hubs.
• Platts Steel Rebar FOB Turkey, the export value gauge for one of the world’s most critical finished steel products.
These two data points—one measuring a major input cost, the other a widely traded output—form the backbone of international steel pricing. And over the last decade, their integration into LME futures has given producers, traders, and buyers a standardized tool for hedging a sector notorious for whiplash volatility.
Robin Martin, Head of Market Development at the LME, says the growth is undeniable: “We saw record volumes in 2024, and with more firms integrating steel futures and risk management into their business models, long-term volume and liquidity growth will continue.”
A Decade of Benchmarking—and a New Tailwind
S&P Global Energy says the milestone reflects broader market maturity. As recycled steel gains economic and environmental momentum, transparent pricing is becoming a prerequisite rather than a luxury.
“These assessments have brought essential transparency to the market,” says Matt Eversman, Director of Global Licensing and Exchange Relationships at S&P Global Energy. He notes that as carbon-intensity scrutiny intensifies across metals, interest in derivatives tied to low-carbon steel inputs is likely to grow.
One structural shift could accelerate things further: Europe’s Carbon Border Adjustment Mechanism (CBAM). Starting in 2026, imported steel will face carbon-intensity-based tariffs—a policy that could tilt the economics even more toward scrap-based production, where emissions are comparatively lower.
From Pricing Tool to Global Reference Layer
Platts launched its Rebar FOB Turkey assessment in 2006 and took ownership of the HMS 1/2 80:20 scrap indicator in 2011 after acquiring The Steel Index. Since then, these benchmarks have evolved into essential infrastructure for market participants worldwide.
Their usage spans far beyond futures settlement. Buyers and sellers use them to structure long-term contracts. Risk managers use them to value inventories. Analysts build supply-and-demand models around them. Even governments use them to set royalties or retail pricing formulas.
Use is voluntary—but the industry keeps choosing them.
The recycled steel economy is expanding, global decarbonization policies are tightening, and risk-management tools are becoming essential. A decade in, Platts’ benchmarks aren’t just holding up. They’re becoming the backbone of a market that’s transitioning from traditional steelmaking to a more circular, carbon-sensitive future.
