Green steel premiums were stable in Europe over the past week amid tepid demand while the industry awaits regulatory developments.
Fastmarkets’ methodology defines European green flat steel as “steel produced with Scope 1, 2 & 3 emissions at a maximum of 0.8 tonnes of CO2 per tonne of steel.”
During the assessment week, premiums for steel meeting these criteria were indicated at €200-300 per tonne from major European suppliers – they have been largely stable over the past few months.
Two supplier sources said they would be willing to knock off no more than €20-30 per tonne from their offers of €200 per tonne to around €170-180 per tonne.
For larger volumes of 3,000 tonnes or more, buyer sources said green steel could be booked with lower premiums of around €120-130 per tonne.
No fresh trades were reported during the assessment week.
Fastmarkets’ weekly assessment of the green steel domestic, flat-rolled, differential to HRC index, exw Northern Europe was an unchanged €130-180 per tonne on Thursday July 10.
Fastmarkets’ assessment of the flat steel reduced carbon emissions differential, exw Northern Europe was €40-60 per tonne on Thursday, also stable week on week.
For steel produced in blast furnaces with reduced carbon emissions of 1.4-1.8 tonnes of CO2 per tonne of steel, premiums were indicated at €40-70 per tonne during the assessment week. Buyers’ estimates of tradeable values were €20-60 per tonne.
A deal for flat steel with 1.5 tonnes of CO2 emissions was reported at a premium of €50 per tonne during the week.
Overall, sources continued to report that demand for low-carbon steel was limited and irregular throughout the assessment week.
“Producing green steel ought to be competitive but the high production costs make it unfeasible,” a mill source in Northern Europe told Fastmarkets. “Passing those costs on to end users is extremely difficult in the current economic climate.”
“We need to see how CBAM [Carbon Border Adjustment Mechanism] is phased in starting 2026 – that might drive some demand [for green steel] as well,” a buyer source said.
On July 2, the European Commission opened a public consultation on the Carbon Border Adjustment Mechanism (CBAM), seeking to strengthen the framework and address any potential loopholes. The consultation is open until August 26
The European Commission also plans to present legislative proposals amending the CBAM in the fourth quarter of 2025.
