Demand for green steel in Europe remained muted in October, with the construction industry showing some selective interest while interest from the automotive industry softened, according to market participants.
A flat steel producer in Northern Europe said there was a lack of buying activity in the flat steel segment from carmakers, adding that “premiums are hard to sell.” The producer said activity may revive closer to mid-2027, when there will be more clarity on the Industrial Accelerator Act, an EU industrial decarbonization initiative.
The producer added that there is, however, some demand now from the construction industry in the Netherlands, especially from bridge reconstruction.
Fastmarkets’ weekly price assessment for green steel domestic, flat-rolled, differential to HRC index, exw Northern Europe, was €120-200 per tonne on October 30, widened downward from €170-200 per tonne on October 23.
Fastmarkets defines green steel as material with combined Scope 1, 2 and 3 carbon emissions not exceeding 0.8 tonnes of CO2 per tonne of steel produced. Scope 1 refers to direct emissions generated by an entity or its subsidiaries; Scope 2 refers to indirect emissions from energy used by an organization; and Scope 3 refers to indirect emissions beyond an organization’s control.
Meanwhile, Fastmarkets’ steel hot-rolled coil index domestic, exw Northern Europe, €/tonne averaged €746.38 per tonne in October to date, up by €2.17 from €744.21 per tonne in September.
An Austrian supplier that plans to start green steel production early next year voiced premium offers of €120-150 ($133.83-167.28) per tonne. A source at the company said there was some demand from original equipment manufacturers as well as the construction industry in Northern Europe.
A Swedish supplier that also plans to start production during 2027 was heard offering a premium of €200 per tonne.
A German supplier was said to offer a premium of €180-250 per tonne for its future output.
Suppliers that already have capacity to sell green flat steel offered premiums of €170-300 per tonne.
Some bookings were heard at €150-200 per tonne for testing and project applications, while spot sales were claimed to take place at even lower levels.
Green steel business is now mainly taking place directly between producers and final customers, while traders are avoiding taking positions because of the lack of demand for the product.
