Slow, uneven demand is keeping prices for "green" steel in Europe at the same level, and sources do not expect a "breakthrough" in consumer interest in the medium term, Fastmarkets reported on Thursday, November 6.
Fastmarkets' weekly estimate of the cost of domestic flat rolled "green" steel, different from the HRC index, for production in Northern Europe on Thursday was stable at 100-170 euros (115-196 dollars) per ton, unchanged since September 11.
According to the Fastmarkets methodology, European rolled products of "green" quality are defined as materials produced with limited greenhouse gas (GHG) emissions in categories 1, 2 and 3 at a level of no more than 0.8 tons of co₂ per ton of steel produced.
European factories offered margins on "raw" steel, starting from about 200 euros per ton, and some suppliers focused on 210-300 euros per ton. But in practice, according to sources, market prices were lower.
"If you apply to a factory for new steel, they may start by asking for a surcharge of at least 200 euros per ton, but as soon as the actual volumes are discussed, suppliers tend to be more flexible," said the Benelux buyer.
Customer sources reported that acceptable surcharges for pure flat rolled products were set in the range of 100-150 euros per ton. The representatives of the plant offered a slightly higher range - 150-180 euros per ton.
The sources noted that since the deals were mostly project-based, prices varied greatly depending on tonnage and region.
"The number of projects in Europe that really require environmentally friendly steel, at least at this stage, is very limited. The range of buyers is limited," a source at a German steel production service center told Fastmarkets.
"There are several customers who regularly order new steel, but volumes remain stable. There are no plans to increase orders for 2026," said a second source at the German steel production service center.
Most sources agreed that Green Steel would continue to occupy a niche market segment for the foreseeable future.
"Without public sector projects stimulating demand, the market for green steel will remain limited," a source at the plant said.
"[We]will see if[the European Commission's]implementation of the Steel and Metals Production Action Plan can contribute to the introduction of environmentally friendly steel," a source at the plant added.
It was expected that the phased introduction of the EU Carbon Boundary Regulation Mechanism (CBAM) in 2026 would "boost" demand for environmentally friendly steel, but this would not happen immediately, sources told Fastmarkets.
