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.
