Low-emission steelmaking capacity in Europe is currently constrained amid challenging market conditions. However, recent regulatory developments have strengthened supplier confidence, helping to unlock next phase of investments. Over the coming decade, electric-arc-furnace flat steel capacity is forecast to expand significantly — led primarily by lower-cost, though not necessarily lowest-emissions, production routes. At the same time, producers are expected to prioritise greater feedstock flexibility to enhance resilience against shifting input costs and market volatility.

Europe's green steel premiums face pressure from CBAM and EU ETS costs. Understand pricing dynamics and path to price parity through 2035.

The European green steel market, crucial for meeting the EU's climate goals, faces challenges from high input costs, economic pressures, and trade uncertainties, while transitioning to low-carbon production methods like hydrogen-based steelmaking offers a pathway to near-zero emissions.