Fastmarkets launches green prices for Asia long steel, China HRC as industry eyes sustainable future

There are more signs emerging of the green steel evolution in Asia, even as steelmakers seek to differentiate themselves with green certifications to edge ahead of competitors, market sources have told Fastmarkets

The Asian steel industry, a cornerstone of burgeoning economies, has been under intense scrutiny for its heavy reliance on metallurgical coal and iron ore. But steelmakers there are now catching up on ‘going green’ and have started using various methods such as carbon capture technology, high-grade iron ore, hydrogen injection and direct-reduced iron (DRI) to minimize environmental impact. Addressing excessive carbon emissions is critical for Asian steelmakers to achieve their climate goals and ensure long-term sustainability.

And as Asia embarks on its green steel journey, establishing its own pricing mechanism is crucial. This not only fosters innovation and investment in green technologies within the region but also ensures that Asia’s steel products remain competitive in the global market. Consumers, businesses and investors are also increasingly seeking green steel that is produced using sustainable methods. This shift in consumer preferences presents a significant opportunity for Asian steel producers to capture market share and differentiate themselves from competitors.

Major Chinese steelmakers, such as Hebei Iron & Steel, have started offering reduced-carbon steel with carbon emissions of 1.1-1.4 tonnes of carbon per tonne of steel produced via the blast furnace-basic oxygen furnace route. Many are also setting themselves up to sell into markets with strict carbon standards in the future, notably the European Carbon Border Adjustment Mechanism, or whichever export markets may enact such carbon safeguards in the future.

It is against this backdrop that Fastmarkets launches green and reduced-carbon steel prices in China and Asia this week, which comes at a time when a period of heavy industrialization is over, and China seeks to leverage its strength in steel production toward high value-add steelmaking, such as electrical steel. China is also presently at what many term “peak carbon” and “peak steel production”, anticipating that steel production levels will continue to dip year on year even as national policymakers attempt to force the mammoth industry to consolidate and improve quality and quantity controls.

Fastmarkets’ reduced-carbon steel prices in China will consist of a fortnightly flat steel reduced carbon emissions differential, exw Eastern China, yuan/tonne, and a daily inferred flat steel reduced carbon emissions, exw Eastern China, yuan/tonne, assessment with the following specifications:

MB-STE-0922 – Flat steel reduced carbon emissions differential, exw China, yuan/tonne
Quality: Steel produced with Scope 1, 2 and 3 emissions of 1.10-1.40 tonnes CO2 per tonne of steel
Quantity: Minimum 10 tonnes
Location: Ex-works China
Timing: Open
Unit: yuan/tonne
Publication: Every two weeks, Friday, 5-6pm Shanghai time

MB-STE-0923 – Flat steel reduced carbon emissions, daily inferred, exw China, yuan/tonne
Quality: Steel produced with Scope 1, 2 and 3 emissions of 1.10-1.40 tonnes CO2 per tonne of steel
Quantity: Minimum 10 tonnes
Location: Ex-works China
Timing: Open
Unit: yuan/tonne
Publication: Daily, 5-6pm Shanghai time

Asia green long steel premiums have also been long coming, with east Asian steelmakers now attempting to achieve green steel premiums for zero-carbon long steel in the domestic and export markets.

Electric-arc furnaces (EAFs) typically have a lower carbon footprint compared to blast furnaces, because they use electricity to melt ferrous scrap. This naturally puts them in a favorable position to produce zero-carbon steel with the aid of carbon credits. Upcoming green steel projects in Asia will also focus on using ferrous scrap or DRI as a steelmaking raw material and will contribute toward lowering emissions even from the relatively less carbon intensive EAF-based production routes.

Fastmarkets’ Asia green long steel assessment will consist of a fortnightly green steel import, differential to rebar assessment, cfr Singapore, $/tonne assessment, and a weekly inferred green steel base price, rebar cfr Singapore, $/tonne, with the following specifications:

MB-STE-0921 Green steel import, differential to rebar assessment, cfr Singapore, $/tonne
Quality: Steel produced with Scope 1, 2 and 3 emissions of 0-600 kg of CO2 per tonne of steel
Quantity: Minimum 10 tonnes
Location: CFR Southeast Asia
Timing: Open
Unit: $/tonne
Publication: Every two weeks, Monday, 5-6pm Singapore time

MB-STE-0924 Green steel base price, rebar cfr Singapore, weekly inferred, $/tonne
Quality: Steel produced with Scope 1, 2 and 3 emissions of 0-600 kg of CO2 per tonne of steel
Quantity: Minimum 10 tonnes
Location: CFR Southeast Asia
Timing: Open
Unit: $/tonne
Publication: Mondays, 5-6pm Singapore time

Asian green steel premiums and market dynamics

Asian green steel premiums have held up well under volatile market conditions, with blast furnace-based producers reporting 20-50% premiums for high-grade flat steel sales to buyers fulfilling sustainability requirements. These include electrical motor producers, shipbuilders, data center construction and wire cutters for silicon chip production.

Fastmarkets’ green steel import, differential to HRC index, cfr Vietnam, was at $102-206 per tonne on October 4, rising for the first time after declining for four consecutive weeks, in line with higher prices for east Asian flat steel.

The weekly inferred green steel base price, hot-rolled coil cfr Vietnam, was at $612-721 per tonne on October 4.

It is worth noting that green long steel premiums may not be as high as those for flat steel, especially because they serve the construction industries primarily, which are a very different segment compared to flat steel applications.

But green long steel premiums will play a part in realizing the decarbonization of property and infrastructure, completing the circular economy once buildings are torn down and obsolete steel is turned into ferrous scrap for re-entry back into the steel production cycle.

The continued development of Asia’s own green steel pricing mechanism will not just benefit the region’s steel industry but also contribute to a more sustainable and prosperous future.

To keep up with the green steel discussion and to follow the critical developments in green steel pricing and low carbon steel production, visit our green steel spotlight page.

Follow the low-carbon steel discussion and keep up-to-date with the developments influencing the decarbonization of the steel industry

What to read next
One of the key changes proposed is to transition to a base price from the effective due to the peculiarities of the structure of the Italian rebar market. Unlike in most European countries, Italy produces two types of products for concrete reinforcement, which are bars and spools, both being widely traded. These two products have […]
The purpose of this review is to ensure that the index continues to accurately reflect prevailing market conditions. We welcome feedback from industry participants on potential amendments to the base specification. This consultation, which is open until August 9, 2025 seeks to ensure that our methodologies continue to reflect the physical market under indexation, in […]
Key talking points from the 75th anniversary event of European steel distributors’ association Eurometal, held July 2-3 in Luxembourg and attended by Fastmarkets.
Mexico’s production and consumption of long steel fell year-on-year in May due to weakness in the country's construction sector, but posted a month on month gain, according to the latest data from the Mexican steel chamber, CANACERO.
Charcoal-based pig iron can potentially support decarbonization strategies in the EU, despite not being widely used in the region, delegates were told at Fastmarkets' International Iron Ore & Green Steel Summit, held June 17-19 in Barcelona.
Following an initial consultation with the market and a review of the typical data sets that have been collected over recent months, Fastmarkets is proposing changes to the specifications of the index for MB-IRO-0009 iron ore 65% Fe Brazil-origin fines, cfr Qingdao, by raising the silica base specification to 2.7% from 2.2%, as well as an […]