As Fastmarkets sources reported on Thursday, August 28.
Customer interest in "green" sheet steel across Europe remains stable, remaining below official offers amid weak demand.
Customer interest in "green" sheet steel remains highly specialized and regionalized throughout Europe.
"Customers are focused on broader issues such as low steel demand, U.
S. tariffs, and legislative changes affecting import flows to Europe[new safeguards and Carbon Border Adjustment Mechanism]," said one major distributor.
The Scandinavian countries remain leaders in the procurement of environmentally friendly steel, with one supplier noting that they sell "up to 90%" of their environmentally friendly steel products to the Nordic countries.
Another supplier reported that they also supply small quantities of environmentally friendly steel to the Nordic countries on a fairly regular basis.
"Buyers in the Nordic countries tend to be more willing to buy environmentally friendly steel. They know that they can shift the additional costs to the end customer, as many government projects in this area still require the use of green steel," the source said.
Methodology
Fastmarkets’ defines European green rolled products as "steel produced with a volume of 1, 2 or 3 emissions of a maximum of 0.8 tons of CO2 per ton of steel".
Premiums for such steel were set at a minimum price of €200 ($233) per ton among European factories.
The buyers estimated the possible prices significantly lower, at the level of €100-130 per ton, adding that the plants were ready to provide discounts on volumes over 2,000 tons.
Suppliers estimate possible prices higher by €150-170 per ton.
As a result of Fastmarkets’ assessment of domestic green steel, flat rolling, differential index HRC, pickup of Northern European Euro 120-170 per ton on Thursday, unchanged over the week.
Fastmarkets’ assessment of strip steel reduced carbon differential emissions, pickup in Northern Europe was also unchanged week-on-week for €40-60 per tonne on Thursday.
For the production of steel in blast furnaces with a reduction in carbon emissions of 1.4-1.8 tons of CO2 per ton of steel, offers for premiums were indicated at €60-70 per ton during the week, the estimate.
Buyers' estimates of market prices are around 20-50 per tonne, with most estimates coming in the range of €40-50 per tonne.
Julia Bolotova
Fastmarkets.com
