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Fastmarkets, a leading cross-commodity price reporting agency (PRA), is proud to announce the launch of two new green steel prices. These new prices will measure the price differential between traditional long steel products and green steel in Northern Europe. This further expands Fastmarkets’ global portfolio of green steel pricing solutions.
The growing concerns over climate change and the environmental impact of industries like steelmaking have placed the spotlight on sustainable practices. Steelmaking is one of the largest contributors to global CO2 emissions, accounting for around 7%. The steel industry has embraced green transformation as a core strategy. European steelmakers have been heavily investing in green steel initiatives to comply with stringent EU emission regulations.
Delivering transparent pricing for the emerging steel market
Fastmarkets continues to lead the way in delivering transparent pricing for the emerging green steel market. In June 2023, the PRA introduced two European domestic green flat steel price indices. They were met with strong support from market participants. While Europe has yet to establish a common standard or official definition for “green steel,” Fastmarkets prices and methodology now provide clarity and transparency in this rapidly evolving sector.
Building on this success, two reduced-carbon-emissions steel price indices were launched in January 2024. This offers the industry a clear benchmark to track this growing market segment. In Europe, most flat steel production relies on blast furnace/basic oxygen furnace (BOF) processes. But many producers are now reducing CO2 emissions to meet stringent EU regulations. Steelmakers achieving a 20-30% reduction in carbon emissions can command premiums for their products. This trend is now reflected in Fastmarkets’ comprehensive pricing portfolio.
Altogether, from 2023 to 2024, Fastmarkets introduced 12 green and reduced carbon steel price benchmarks, offering clarity on price differentials with traditional steel products. This supports investment decisions and fosters transparency in this emerging market.
The introduction of these new price indices will further enhance Fastmarkets’ global green steel coverage. It will provide a critical reference point for European steel producers and international suppliers aiming to sell green steel in Europe. By establishing transparent pricing, these indices will help support investment decisions and drive emission reductions across the sector.
“The launch of our green steel price indices for long steel is a key step in supporting the steel industry’s green transition,” said Andrew Wells, Fastmarkets editorial and pricing director. “By increasing transparency, we aim to drive sustainable investment and reduce emissions, reinforcing our commitment to a net-zero future,” he said.
In parallel with its green steel initiatives, Fastmarkets continues to develop its pricing series for high-grade iron ore, metallics, and ferrous scrap. This solidifies its position as a trusted source of pricing insights for the steelmaking industry.