European green steel premiums little changed; deals remain sporadic

European green steel premiums were little changed in the past week, with demand remaining slow because original equipment manufacturers (OEMs) feel no pressure to “go green” yet, sources told Fastmarkets on Thursday August 3

Fastmarkets’ weekly assessment of the green steel domestic, flat-rolled, differential to HRC index, exw Northern Europe was €150-250 ($164-274) per tonne on Thursday, narrowing downward by €50 per tonne from €150-300 per tonne on July 28.

A buyer source reported an assessment for flat steel produced via electric-arc furnace (EAF) with carbon content of about 0.4-0.5 tonnes per tonne of steel at €150-200 per tonne.

Offers for such material were heard at €150-250 per tonne, depending on the mill. Additionally, long-term contracts for green steel deliveries were being negotiated with such premiums, mainly with automotive companies.

Another buyer reported an assessment for flat steel produced via EAF with carbon content of 0.4-0.6 tonne per tonne of steel at €100-150 per tonne.

A mill source gave an offer for flat steel with less than 0.1 tonne of CO2 per tonne of steel at €300 per tonne, but added that demand for “nearly 100% decarbonized steel is very low, since such premiums are way too high for the most buyers.”

An end-user source said that demand for green steel remains low and rather sporadic because OEMs currently do not feel much pressure from authorities to use decarbonized steel.

But this is expected to change gradually in the upcoming years, with the EU’s Carbon Border Adjustment Mechanism (CBAM) being phased in and free Emissions Trading System (ETS) allocations being phased out.

Notably, sources estimated that by 2030, 30% of the European steel market will be green (zero or close to zero emissions).

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. Learn more.

What to read next
American Chambers of Commerce (Amcham) across Latin America are calling for urgent negotiations to prevent the escalation of trade tensions between their countries and the US, following the announcement of sweeping 50% tariffs by President Donald Trump.
China’s push for greener ferro-alloy production has revealed a significant divide between its northern and southern regions due to contrasting access to clean energy, supply and demand dynamics and regulatory environments, according to market participants.
Fastmarkets confirms its decision to discontinue its two domestic European stainless steel base price assessments.
The government of Finland was ramping-up support for its burgeoning battery materials supply chain through grants for facilities owned by Easpring Finland New Materials and Fortum Battery Recycling, the firms said on Thursday July 10.
The publication of Fastmarkets’ assessments for nickel 4x4 cathode, nickel briquette and nickel uncut cathode premiums in-whs Rotterdam was delayed on Tuesday July 16 because of a reporter error.
Nickel pig iron (NPI) is a key feedstock material used for stainless steel production, and the CIF has grown to become one of the mainstream trading methods for the Chinese market. The proposed price assessment will allow Fastmarkets to bring more transparency to the Chinese NPI market. Fastmarkets has been tracking spot and DDP China […]