Sources told Fastmarkets that spot trading in green leaf rentals in Europe remained weak in the week to Thursday, June 4, although some sellers were able to secure higher premiums in individual transactions.
Fastmarkets defines environmentally friendly steel as a material with a combined carbon emission level of 1, 2 and 3, which does not exceed 0.8 tons of CO2 per ton of steel produced.
Suppliers continued to demand premiums mainly in the range of 150-200 euros ($211-234) per tonne, while customer price offers were reported to vary greatly depending on whether it was a purchase on the spot market or a sale agreement on the secondary market.
Overall, the situation in the spot market remained calm, and most buyers either did not want to pay a premium at all, or performed below mills' targets.
However, one of the sellers said that during the recent sales he managed to reach 170-200 euros per ton.
Fastmarkets' weekly estimate of prices for domestic flat rolled products with a differential to the HRC index in Northern Europe on EXW terms on July 4 was raised to 100-200 euros per ton from 100-170 euros per ton on May 28.
Another source from among the manufacturers confirmed the difference between spot and long-term demand, explaining that currently consumers such as car manufacturers or manufacturers of household appliances do not need a lot of environmentally friendly steel, since the models they produce now still meet the old standards – in addition, they reduce carbon dioxide emissions. gas by reducing production costs. Emissions according to scope 1 and 2.
The closer to 2030, the stricter the requirements for reducing carbon dioxide emissions will be, and it is then that new models will be produced, which will require environmentally friendly steel.
A market source added that the current demand for environmentally friendly steel is extremely low, as the market is facing other challenges such as uncertainty related to the import segment and economic instability caused by the conflict in the Middle East.
Author: Vlada Novokreschenova
Fastmarkets.com
