On September 16, McCloskey hosted the Green Steel Day networking event in Dusseldorf, Germany, where we shared our views on current developments in the European and global steel markets, the EU legislative agenda, and long-term trends in decarbonization. In this article, we present a summary of the main topics discussed.
Market overview of European steel and "green" steel
The recovery in prices for rolled steel on the EU domestic market slowed in August as buyers refused to raise prices further. However, the upcoming introduction of the Carbon Dioxide Emissions Control Mechanism (CBAM) in 2026, along with the expected introduction of tougher protective measures for steel around the same time, continued to support prices.
Interest in new import purchases has largely faded, as the increased delivery time has scared off new buyers. orders. Instead, buyers are focusing on customs clearance of existing volumes in 2025, even if this means exceeding import quotas and paying duties of up to 25%. Importers prefer to operate within the framework of the usual guarantee system with its predictable risks, rather than commit to supplies in 2026 until the CBAM rules are finalized.
The volume of trade in "green" steel in Europe remains limited due to the lack of standard definitions of "green" steel and the overall weak steel market. Distributors are showing a growing interest in low-CO2 products, but they are still reluctant to keep stocks without a reliable buyer.
The margins for European hot-rolled coils (HRC) with environmentally friendly characteristics currently range from 60 to 300 euros per ton. Lower levels apply to mass-balanced materials, while the highest premiums are achieved with direct sales from pilot plants to end users willing to cover additional costs.
At the same time, foreign plants have become more active in selling environmentally friendly steel to the EU at significantly lower premiums than domestic suppliers. Some exporters have already received environmental declarations for products (EPD), while others advertise rolls produced by direct reduction of iron in an electric arc furnace (DRI-EAF) as "environmentally friendly", and EPD certification is expected soon. On average, premiums for Turkish and Chinese "green" HRC with a co₂ content below 1 ton (volumes 1-3) they amounted to about $20 per ton.
The European steel industry in a global context
China remains the main determinant of trends in the steel industry, due to the growing
