The 13 EU countries behind the push for a Steel Safeguard review
On November 29, 2024, 13 EU Member States submitted a substantiated request to the European Commission, calling for a functional review of the safeguard measures on steel imports.
This initiative is a critical response to the growing challenges facing the European steel industry, which include shrinking domestic demand and rising global competition fueled by excess steelmaking capacity.
The joint letter, signed by ministers and senior officials from Belgium, Bulgaria, Germany, Greece, France, Italy, Luxembourg, Austria, Poland, Portugal, Romania, Slovenia, and Slovakia, highlights the urgency of revisiting the current tariff-rate quota system.
These countries emphasized the need for swift action to address the structural and market changes affecting the EU steel industry.
Was bleibt vom Stahljahr 2024?
Das Stahljahr 2024 war aus Sicht von Herstellern und Verbrauchern ein Jahr zum Vergessen. Vor allem im zweiten Halbjahr untertraf die Marktentwicklung bei weitem die Erwartungen. Eine Besserung ist kurzfristig nicht in Sicht. Über den Tag hinaus brachte das Jahr wenigstens vier Erkenntnisse. Diese sind teilweise für Stahleinkäufer direkt operativ nutzbar, betreffen aber auch strategische Erkenntnisse für stahlverarbeitende Unternehmen. Auch wenn zum Jahreswechsel traditionell positive Botschaften gefragt sind, lässt mancher Trend nichts Gutes ahnen.
Es ist die Nachfrage, Dummkopf!
In Anlehnung an einen Wahlkampf-Slogan des früheren US-Präsidenten Bill Clinton kann man es nicht oft genug wiederholen und in diesem Jahr ist es brutal bestätigt worden: Ohne wettbewerbsfähige Stahlverbraucher mit einem ordentlichen Produktionsniveau steht die hiesige Stahlerzeugung im Regen. Während lagergetriebene Sondereinflüsse in den Jahren 2021 und 2022 zu Versorgungsengpässen und Rekordgewinnen der Stahlerzeuger geführt haben, wurde die Stahlnachfrage in diesem Jahr weitgehend vom realen Bedarf bestimmt. Dieser ist in allen wichtigen Abnehmerbranchen geschrumpft, der mittelfristige Trend der vergangenen Jahre weist am EU-Markt und noch prägnanter in Deutschland klar nach unten. Bestandseinflüsse spielten kaum eine Rolle, der Stahlexport konnte den schwachen Inlandsmarkt nur in begrenztem Maße kompensieren. Die Erträge der Stahlhersteller sind unter erheblichen Druck geraten.
Kapazitätsanpassungen, wie sie zum Beispiel von ThyssenKruppSteel angekündigt wurden, sind eine Folge der im Trend fallenden Nachfrage der hiesigen Verarbeiter. Nicht die Politik, sondern die Kunden bestimmen darüber, wieviel Stahl in Deutschland gebraucht wird. In diesem Blogbeitrag sind die aktuellen und künftigen Probleme der Stahlverarbeiter bereits beschrieben worden. Kluge Stahlpolitik sollte im Sinne klassischer Standortbedingungen auch die Stärkung der Nachfrageseite im Auge behalten. Denn die Standortfrage ist längst auch in mittelständischen Unternehmen der Stahlverarbeitung angekommen. In der Realität konzentriert sich die Politik leider zu stark auf die Unterstützung der Stahlhersteller und blendet negative Folgen für ihre Kunden aus. Gerade vor dem Hintergrund der ab 2026 in schnellen Schritten steigenden CO2-Kosten trübt dies die Perspektiven der gesamten Wertschöpfungskette Stahl stark ein.
Kosten bestimmen die Preise
In Zeiten schwacher Nachfrage sind die Herstellkosten der wichtigste preisbestimmende Faktor für Stahl. Entsprechend sind bei Flachprodukten aus der Hochofenroute die Spotmarktpreise im Jahresverlauf klar gefallen, während sich bei Langprodukten aus dem Elektroofen keine größeren Veränderungen gezeigt haben. Auf absehbare Zeit gilt für beide Herstellrouten, dass ohne die Unterstützung durch deutlich höhere Herstellkosten keine stärkeren Preisanhebungen umgesetzt werden können. Die Herstellkosten werden wiederum von den Rohstoffkosten getrieben, die im Falle der Hochofenroute am Weltmarkt und dort vor allem in China gemacht werden. Hier ist im kommenden Jahr ein weiterer Rückgang gut möglich, obwohl im Winterhalbjahr durchaus auch noch Preissteigerungen möglich sind. Für die Elektrostahlwerke sind Schrott und Strom die maßgeblichen Faktoren.
Stahleinkäufer sollten daher auch im neuen Jahr die Rohstoffpreise der jeweiligen Route als wichtigsten Frühindikator für die Stahlpreise eng beobachten.
Die De-Karbonisierung mit Wasserstoff trifft auf die Realität
Die Politik und alle hochofenbasierten Stahlhersteller in Deutschland haben sich für die wasserstoffbasierte Direktreduktion als Königsweg zur De-Karbonisierung entschieden. Bei der Umsetzung der Pläne stockt es aber unverkennbar. Der Grund: es ist weiterhin nicht klar, wann, in welchen Mengen und zu welchen Kosten grüner Wasserstoff zur Verfügung stehen wird. Weder Investitionsentscheidungen für die erforderlichen heimischen Elektrolyseure noch die Wasserstoff-Import-Strategie der Politik kommen im nötigen Tempo voran. In den einschlägigen Unternehmenspräsentationen und Pressemeldungen wird eher im Kleingedruckten darauf hingewiesen, dass die neuen Direktreduktionsanlagen zunächst ganz überwiegend mit Erdgas betrieben und dann, je nach Verfügbarkeit und Kosten, auf grünen Wasserstoff umgestellt werden.
Auch die geplante Inbetriebnahme der neuen Direktreduktionsanlagen scheint sich zu verzögern, wenn man die ursprünglichen Ankündigungen mit den aktuellen Verlautbarungen vergleicht. Die Saarhütten sprechen nun von einer Inbetriebnahme 2028/2029 statt 2027, bei der Salzgitter AG „könnte“ die erste Anlage 2026 statt 2025 in Betrieb gehen, bei ThyssenKruppSteel scheint die ursprünglich für 2025 angestrebte Fertigstellung nun selbst für 2026 nicht sicher zu sein, ArcelorMittal hat Investitionsentscheidungen für die deutschen (wie auch für andere) Standorte zuletzt auf Eis gelegt.
Blickt man über den nationalen Tellerrand hinaus auf internationale Studien oder auf Statements führender Anlagenbauer wird schnell klar: Die Ausgangsbedingungen für eine international wettbewerbsfähige Erzeugung von grünem Stahl auf Wasserstoffbasis sind in Deutschland nicht gut. Die Absicht der Politik, trotzdem alle bisherigen Hochofenstandorte mit massiver finanzieller öffentlicher Förderung und weitreichenden Markteingriffen in das neue grüne Zeitalter zu retten, erscheint immer fragwürdiger. Ebenso diskussionswürdig ist die Frage, ob und wenn ja zu welchem Preis die weltweit einmalig ambitionierten Klimaziele der Stahlindustrie erreicht werden können.
Für Stahlverarbeiter lässt sich daraus ableiten, eigene Ziele und Zusagen gegenüber Kunden zur Reduzierung der CO2-Emissionen kritisch zu hinterfragen. Dies betrifft sowohl die Zeitachse als auch die jeweiligen Reduzierungsstufen.
Politik-Einfluss wird immer stärker
Stahlgipfel, Demonstrationen, politische Erklärungen und erste Rufe nach staatlichen Beteiligungen an Stahlherstellern zeigen: Stahl ist heute zu großen Teilen Politik. Historisch betrachtet ist die Phase beendet, in der die Stahlerzeugung mit dem Auslaufen des EGKS-Vertrages im Jahre 2002 zu einer „normalen“ Branche unter marktwirtschaftlichen Bedingungen wurde. In der EU wird kaum eine größere Investition ohne Staatshilfe getätigt, keine größere Unternehmensentscheidung bleibt ohne politischen Kommentar. Die faktischen Gegebenheiten der grünen Transformation der EU im internationalen Alleingang und die hohe Symbolkraft der Stahl-Standorte führen zu einer Spirale staatlicher Eingriffe, die augenscheinlich noch nicht beendet ist.
Wahrscheinlich werden Maßnahmen zur weiteren Marktabschottung gegen Importe zunehmen. Ebenso ist damit zu rechnen, dass unter dem Schlagwort der grünen Leitmärkte Verwendungsquoten für CO2-reduzierte Stähle eingeführt werden, die im schlechtesten Fall nur mit grünen EU-Labels erfüllt werden können. Ein direkter Staatseinstieg in einzelne Unternehmen war nie so hoch wie jetzt.
Auch auf internationaler Ebene ist klar ein Trend zu immer mehr Protektionismus erkennbar. Der neue Präsident der USA wird dies voraussichtlich nochmals verstärken. Auch viele asiatische Länder, die in dieser Hinsicht bisher eher zurückhaltend waren, schotten ihren Stahlmarkt nun stärker ab. Es zeichnet sich eine Regionalisierung des Stahlhandels ab.
Was diese Trends perspektivisch für die eigene internationale Wettbewerbsfähigkeit und die Zukunftsaussichten bedeuten, muss jedes stahlverarbeitende Unternehmen für sich selbst bewerten. Es wäre aber fahrlässig, vor den kommenden Herausforderungen die Augen zu verschließen.
Andreas Schneider
SSAB secures environmental permit for Lulea steelworks transformation
Nordic steelmaker SSAB received the necessary permit from the Land and Environmental Court in Umea, northern Sweden’s Vasterbotten County, to build and operate a mini-mill in Lulea, Norrbotten County, to replace the current blast furnace-based steel plant, it said in a Dec. 19 statement.
It said the permit enables a technology shift that would have positive effects on the environment and the climate and allow SSAB to meet the high demand for its steel products.
It further said construction preparations would now continue with detailed engineering and the building permit process. It added that once the new plant with electric arc furnaces, rolling mills, and further processing was running at full capacity, SSAB would decommission Lulea’s current blast furnace-based production system.
“This is a big day for SSAB and for the transformation to fossil-free steel production in Sweden. Now we can proceed with an investment that will result in reduced climate impact of national significance,” SSAB president and CEO Johnny Sjostrom said.
He added that the mill’s transformation would also create a more flexible and cost-effective production with a wider range of premium and special steel products with close to zero emissions and safeguard jobs in Lulea.
SSAB said the investment would result in a better cost position, higher efficiency, shorter lead times, and elimination of CO2 costs. The new mill would run on fossil-free electricity and be supplied with a mix of fossil-free sponge iron produced with its HYBRIT technology and recycled steel scrap.
Unlike traditional steelmaking, which relies on coking coal, SSAB’s HYBRIT process uses hydrogen, produced with renewable electricity, to produce sponge iron, which is then processed into steel. According to SSAB, the process emits water vapor instead of CO2 and largely eliminates CO2 emissions from the steelmaking process.
SSAB said the Lulea mill’s transformation would significantly reduce emissions to air and water, increase resource efficiency, and remove about 2.8 million mt/year of carbon dioxide emissions.
In total, SSAB’s transformation will enable a reduction of 10% in Sweden’s total CO2 emissions, of which 7% comes from Lulea and 3% from the transformation in Oxelosund, according to SSAB.
Platts, part of S&P Global Commodity Insights, assessed the daily Northwest Europe HRC carbon-accounted steel price at Eur615/mt ex-works Ruhr on Dec. 18, down 22% since the start of 2024.
EU HRC prices rise on higher European mill offers
European hot-rolled coil prices rose slightly Dec. 19, as sources confirmed a large increase in offer levels by a major European mill.
Sentiment remained uncertain over the direction of price movement, with questions over whether the market would see a significant improvement in real demand for steel in 2025.
A mill source expressed “mixed feelings” over improved price stability in the European flat steel market stating that “mills are not complaining about the quantity of orders, but over margins, which are under pressure.”
“No customers want to buy too much stock at current price levels, instead, customers only buy what they need,” the source said.
Sources reported that mills and producers in Europe have been “aggressive” in their pricing strategy as they compete for low levels of demand.
“Imports are not present in the market,” a source said, stating that it’s because of their uncompetitive pricing and uncertainty over the European Commission’s newly announced safeguard review. Customer confidence in imports fell due to long delivery lead times, and the on-going risk of anti-dumping investigations.
Platts assessed Northwest European HRC at Eur560/mt ex-works Ruhr, up Eur5 on the day.
Platts assessed Southern European HRC at Eur555/mt ex-works Italy, stable on the day.
Platts assessed imported HRC in northwest Europe at Eur530/mt CIF Antwerp, stable on the day.
Meanwhile, Platts assessed imported HRC in South Europe at Eur530/mt CIF Italy, stable on the day.
The green steel revolution in 2025 – navigating a new frontier
As we prepare for the arrival of carbon emission-free steel, it is critical to understand the implications for pricing models, market dynamics, and the way supply chains will need to evolve. The key question for the industry is no longer whether zero-carbon steel will happen – it is how to adapt to a world where it becomes the norm. To succeed, stakeholders must adopt new strategies, embrace transparency, and collaborate more deeply than ever before.
Steel mills: balancing innovation with viability
Steelmakers are at the forefront of the green transition, embracing hydrogen-based direct reduction iron (DRI) in Europe and scrap-based electric arc furnace (EAF) technology in the US. While hydrogen shows great promise, its adoption is hindered by high costs, limited availability of green hydrogen, and the need for significant infrastructure upgrades.
Energy costs pose an additional challenge. In traditional EAF steelmaking, energy accounts for 15-20% of production costs, but in new hydrogen-based DRI/EAF processes, this could rise to over 40%, reflecting the energy-intensive nature of hydrogen production.
Regulatory pressures, such as the EU’s Carbon Border Adjustment Mechanism (CBAM), which comes into full effect in 2026, further complicate operations. While CBAM incentivizes decarbonization by protecting low-emission producers from cheaper high-carbon imports, it also pressures steel mills to accelerate investments in green technologies to stay competitive in a changing global market. Rising energy costs and potential supply chain bottlenecks add financial strain, requiring steelmakers to adopt more agile production and procurement strategies.
End users: the demand for decarbonized supply chains
Industries like automotive and construction face dual pressures to reduce carbon footprints while controlling costs. Green steel promises a lower-emission alternative, but its premium – which has consistently tracked at an additional cost of 20-40% across Fastmarkets’ global suite of green steel differentials – remains a stumbling block for many end users.
The solution lies in strategic partnerships between steelmakers and end users, with long-term offtake agreements that balance costs while ensuring supply chain sustainability. Certification standards, still evolving, will become critical to verifying claims and aligning procurement decisions with climate goals.
Middle players: navigating complexity and uncertainty
For middle players such as traders, distributors, and service centers, the green steel transition adds layers of complexity. Managing inventories that include traditional, low-emission, and zero-carbon products introduces logistical challenges, while pricing volatility and regulatory compliance add further strain.
The EU’s upcoming Waste Shipment Regulation, which limits scrap exports to non-Organisation for Economic Co-operation and Development (OECD) countries, will increase competition for high-quality feedstocks within the EU. Middle players must adapt to tighter supply conditions, rising prices, and shifting trade dynamics to maintain their roles in the value chain.
Raw material producers: rising demand for premium inputs
As steel production increasingly pivots to hydrogen-based and EAF technologies, raw material producers face growing demand for higher-quality inputs like DRI-grade iron ore and quality scrap. To meet this demand, these producers may need to innovate by developing methods to improve the quality of lower-grade ores or increase the efficiency of extraction processes. The EU’s upcoming restrictions on scrap exports to non-OECD countries will further disrupt traditional supply chains. Scrap producers will need to adapt by enhancing the quality of their materials through better sorting technologies or exploring regional supply chains to comply with the regulations. Strengthening relationships with steelmakers and securing long-term contracts will be key to ensuring a steady demand for premium materials as steel mills shift toward low-emission production.
Financiers: decoding risks and opportunities
Green steel projects require enormous capital investments, often without guaranteed returns in the short term. For financiers, this raises questions about risk and reward, particularly as regulatory environments evolve. Financial instruments like sustainability-linked loans and green bonds are increasingly critical, and their effectiveness depends on the availability of consistent benchmarks for green premiums.
Financiers also face pressure to align with environmental, social and governance (ESG) goals, and the complexity of valuing decarbonization efforts presents both a challenge and an opportunity. Those who can effectively quantify and mitigate risks tied to green steel investments stand to play a pivotal role in enabling the sector’s transformation.
The role of multi-stakeholder platforms
Collaborative initiatives are essential for navigating the complexities of green steel production. Multi-stakeholder efforts such as UNIDO’s (United Nations Industrial Development Organisation) Industrial Deep Decarbonisation Initiative, and the Climate Group’s SteelZero, bring together policymakers, producers, and end users to align on decarbonization goals and drive systemic change.
These platforms help stakeholders address overlapping challenges, from standardizing low-emission certifications to developing frameworks for sustainable supply chain finance. By fostering collective action, they reduce uncertainty and promote scalable solutions.
Navigating the challenges of today – trade tensions, and the just transition
The global push for decarbonization is colliding with escalating trade tensions. Tariffs on steel and its raw materials could undermine efforts to create open markets for green steel. The CBAM rollout might trigger friction with trading partners, with some viewing it as protectionist.
But this challenge opens the door to regional collaborations. Agreements between climate-aligned countries could streamline trade for green steel, providing a much-needed competitive edge for low-emission producers.
Decarbonization is as much about people as it is about technology. The shift to green steel production risks leaving traditional steelworkers behind, especially in regions dependent on emissions-intensive plants. Without investment in retraining and support, the transition could exacerbate inequality.
Yet, the human dimension also presents an opportunity. Companies prioritizing a just transition will attract ESG-driven investors, build stakeholder trust, and gain a competitive edge by integrating social considerations into their business models.
What lies ahead in 2025
The road to decarbonization in 2025 will be defined by:
• The first zero-carbon steel production in Sweden, setting a global benchmark.
• The phased implementation of CBAM, reshaping trade flows and emissions accounting.
• The fine-tuning of international standards for low-emission steel, providing long-awaited clarity for buyers and sellers.
• Supply-chain disruptions in scrap and iron ore markets, necessitating greater agility and foresight.
• Gradual energy sector transformation in Europe to feed new DRI capacities.
Navigating the transition
Reliable market intelligence will be critical for navigating this new frontier. Clarity of pricing across the entire steel value chain – from raw materials and semi-finished products to finished goods – provides a foundation for informed decision-making. Fastmarkets’ robust pricing solutions, including green steel and green ferroalloy differentials, empower stakeholders to manage volatility, enhance transparency, and build confidence in their strategies.
With the right tools, insights, and collaborations, the steel value chain can transform the challenges of 2025 into pathways for growth and leadership in a decarbonized future.
European steel beam prices flat amid slow Christmas season, disruption on Moselle river
Fastmarkets’ monthly price assessment for steel beams, domestic, delivered Northern Europe was €780-790 ($816- 827) per tonne on Wednesday, unchanged from November 20.
Similarly, Fastmarkets’ monthly price assessment for steel beams, domestic, delivered Southern Europe was €780-790 per tonne on Wednesday, also flat month on month.
Sources told Fastmarkets that mills were offering material at prices €20 per tonne higher, but said the raised levels were not workable, with trade slowing ahead of the Christmas holiday period in already negative demand conditions.
Prices were also stable despite the disruption to logistics in Germany caused by a crash at the Müden lock on the Moselle river on December 8, which blocked the passage of 74 ships on their way to the river Rhine – one of Europe’s key routes for metals shipments including aluminium and steel.
As of Wednesday, 18 ships had left the lock heading in the direction of the Rhine, with the emergency, temporary closure of the lock chamber made possible using nine welded steel beams, according to Germany’s Federal Waterways and Shipping Administration (WSV).
With permanent repairs expected to last until Spring, sources said the incident could have a big impact on the delivery of materials, because the alternative road or rail transport options are far more expensive.
Overall, while the cost of steel scrap in Turkey’s bellwether market has fallen so far in December, sources said, prices climbed by 1.25% day-on-day on Wednesday due to the current supply and logistics challenges in Europe and increased demand from Turkish mills for January cargoes.
Fastmarkets’ calculation of its daily index for steel scrap HMS 1&2 (80:20 mix) North Europe origin, cfr Turkey was $348.12 per tonne on Wednesday, down $3.91 per tonne month on month from $352.03 per tonne.
European CRC, HDG prices struggle with low demand, lack clear direction
Demand for domestic cold-rolled coil (CRC) and hot-dipped galvanized (HDG) coil remained poor in Europe, with seasonal factors supporting this trend, Fastmarkets understands.
“December is usually a quiet month. Demand is very poor. We tried to work two shifts this month, but we did not succeed, and we work one shift now,” a supplier of CRC and HDG in Northern Europe told Fastmarkets.
A second supplier source from the region told Fastmarkets that the domestic HDG market was performing better, but the CRC market “was non-existent.”
But sentiment in Northern Europe brightened slightly on the news of an upcoming safeguard review by the European Commission and ArcelorMittal’s announcement of a price increase for some flat steel products.
In Northern Europe, offers of CRC for delivery in the first quarter of 2025 were heard at €670-690 ($701-722) per tonne ex-works during the assessment week.
But activity remained low, and no major deals were heard in the market.
Buyers’ estimations for the workable market level were seen lower at €640-660 per tonne ex-works.
Based on slightly higher estimations of industry sources, Fastmarkets’ weekly price assessment for steel cold-rolled coil domestic, exw Northern Europe was €640-660 per tonne on Wednesday, widening upward by €10 per tonne from €640-650 per tonne on December 11.
April-delivery CRC from India and Japan was heard offered to Northern Europe at €660 per tonne CFR Antwerp.
Industry sources from the region estimated the workable market level to be lower, at €640-650 per tonne CFR.
But imports of CRC to Northern Europe were considered unattractive, Fastmarkets understands.
“If you need the material in February, April-delivery CRC from Asia is too late. Besides, you can buy the material from local suppliers at similar levels and with shorter lead times. Payment terms for bookings from European suppliers are also better,” a buyer source told Fastmarkets, adding that the current exchange rate of the US dollar against the euro also makes imports unattractive.
Trading in the Northern European HDG market also remained subdued in the week to Wednesday.
Offers for HDG in the region were heard at €680-690 per tonne ex-works.
In addition, on Wednesday, Arcelor Mittal announced higher offers for some flat steel products across Europe, with HDG price for February/March delivery increasing to €750 per tonne ex-works or delivered, industry sources told Fastmarkets.
It remains to be seen if such a price level would be accepted by the market.
Buyers’ estimations for the workable market level were at €640-675 per tonne ex-works.
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil domestic, exw Northern Europe was €640-675 per tonne on Wednesday, widening slightly upward by €5 per tonne from €640-670 per tonne on December 11.
Meanwhile, domestic prices for CRC and HDG in the Italian market went slightly down compared to the previous assessment week.
February-delivery CRC was on offer in Italy at €660-680 per tonne ex-works, industry sources told Fastmarkets.
But these offer price levels were seen to be too high to be workable.
“To be accepted in deals, the domestic CRC prices should be €20 per tonne lower,” a second buyer source told Fastmarkets.
Fastmarkets’ weekly price assessment for steel cold-rolled coil domestic, exw Southern Europe was €640-660 per tonne on Wednesday, widening downward by €10 per tonne from €650-660 per tonne ex-works on December 11.
CRC from India was on offer in the Italian market at €640-650 per tonne CFR.
Some limited volumes of CRC from Japan were offered in the Italian market at €630 per tonne CFR, industry sources told Fastmarkets.
Domestic offers of HDG in Italy were heard at €680-710 per tonne ex-works, with buyers estimating the tradeable market price at €660-680 per tonne ex-works.
Fastmarkets’ price assessment for steel hot-dipped galvanized coil domestic, exw Southern Europe was €660-680 per tonne on Wednesday, widening slightly downward by €10 per tonne from €670-680 per tonne on December 11.
Asian-origin HDG was on offer to Italy at €700-720 per tonne CFR, Fastmarkets understands.
European green flat steel suppliers maintain premiums at high levels
In general, European steelmakers were optimistic regarding green steel uptake in the following years, despite ongoing challenges, sources told Fastmarkets.
“We don’t see booming volumes [for green steel sales] now, but we see steady inquiries almost every week — for 100, 500 tonnes — but the interest is growing,” a steel mill in Europe said.
Sources, however, agreed, that economic crisis in Europe was slowing down decarbonization and green steel uptake in the market in general.
“It’s hard to create sustainable demand for green steel in such environment, when businesses are struggling to keep afloat,” a buyer in the Benelux region said.
“[EU] member states must intervene — we need public infrastructure projects that would stimulate buyers to ‘go green,’” they added.
Fastmarkets’ methodology defines European green steel as steel produced with Scope 1, 2 & 3 emissions at a maximum of 0.8 tonne of CO2 per tonne of steel.
Green steel suppliers in Europe maintained premiums for such steel at €200-350 ($209-366) per tonne.
Notably, a premium for steel with carbon emission of under 600 kilograms and Scope 1,2 and 3 upstream was reported at €200 per tonne.
Transactions for such steel were heard at €170 per tonne during the week, but for limited tonnages.
Premiums for steel, carbon neutral under Scopes 1 and 2 were reported at €300-350 per tonne.
And premiums for green steel, with Scope 1, 2 and upstream Scope 3 carbon emissions of less than 0.8 tonnes per tonne of steel, were reported at €200-250 per tonne.
Industry sources estimated achievable prices for such material at €100-150 per tonne.
Some bids were reported at even lower levels — €50-80 per tonne.
Producer sources said that it would be not commercially viable to sell green steel with such low premiums, considering costs of production and short availability.
“We can provide certain discounts on decent volumes [of green steel], but there is a limit — we can’t be selling green steel for free,” a second steelmaker said.
As a result, Fastmarkets calculated its weekly green steel domestic, flat-rolled, differential to HRC index, exw Northern Europe at €100-200 per tonne on Thursday, stable week on week.
European HRC market steady: imports limited, Service Centers face challenges
Hot rolled coil prices in Italy and wider Europe have remained largely stable on-week, following a moderate increase in transaction values observed earlier this month.
Producers in Italy have strived to increase prices to €600-610/tonne ($624.9-635.4) delivered in December; however, this price point has not yet been reflected in contracts, according to knowledgeable sources.
The market is currently experiencing a lull, characterised by a lack of transactions as the holiday period approaches, during which producers will initiate extended production stoppages.
Contract prices are currently at approximately €560-570/t delivered, with any bids falling below this threshold being declined. Numerous buyers indicate there are no accessible import alternatives other than Turkish-origin HRC, which is being quoted at €580/t cfr duty paid. Service centres that spoke to Kallanish are not considering purchases from the import market, as even the prices delivered from Turkey appear to be less competitive compared to domestic HRC.
On 1 January, EU HRC buyers will clear material imported from Asia through customs. A source believes the tonnage of HRC at ports that exceeds quotas is limited after a significant reduction in purchases from Asia in recent months, driven by EU import restrictions.
Numerous service centre buyers in Italy have ceased operations this week and are continuing to implement workforce layoffs. A number of mill customers are suspending operations for one month. Downstream demand is reported low since November.
Meanwhile, ArcelorMittal is increasing coil prices by €20/t in Europe for delivery in the new year. Lead times at the steelmaker’s plants in Europe are now extended to February and March. For some downstream products, a few allocations are left for March and bookings will spill over into the second quarter.
For the few February allocations left of HRC, new asking prices are at €630/t base delivered. Prices for hot-dipped galvanised coil are also being pushed up, to €750/t base delivered.
Natalia Capra France
Italian rebar makers push up prices
Several Italian rebar producers are halting sales and seeking a €20/tonne ($20.8) increase for deliveries scheduled in January. Mills have already increased values this month and will continue to deliver material until the end of this week, Kallanish notes.
Current quotes from producers are positioned at €320/t base ex-works, applicable for orders delivered by the end of this month. For contracts executed in January, asking prices are set at €340-350/t base ex-works. This indicates a significant rise from the November asking price of €300/t base ex-works.
Current transactions, for December delivery, are positioned within the €300-320/t base ex-works range. A number of rebar mills are going to cease operations by the end of this week, with some having already suspended their facilities. Activity will resume on 7 January.
Current transactions are priced within the €560-580/t ex-works range, including size extras averaging approximately at €260/t. Domestic mesh contracts are at €410-420/t, excluding transportation costs – size extras are an additional €300/t, according to sources.
Natalia Capra France