European demand for green flat steel was close to zero in the week to Thursday June 11, with buyers largely unwilling to pay premiums for low-emission material in the absence of regulatory pressure or government-led incentives.
Market participants said that in the current conditions, most customers have continued to prioritize cost over carbon footprint, leaving activity for green flat steel minimal and limiting mills’ ability to secure meaningful price differentials.
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.
Suppliers seek a €150-200-per-tonne ($174-$231) premium for such material; however, buyers presently demonstrate clear reluctance to pay even a single euro.
As a result, Fastmarkets’ weekly assessment of the green steel domestic, flat-rolled, differential to HRC index, exw Northern Europe dropped to €0-150 per tonne on June 11, down from €100-200 per tonne on July 4.
