Demand for green steel in Europe remained low in October. The construction industry showed some interest, while interest from automakers waned, market participants said.
A northern European flat steel producer noted that automakers were barely buying the product. “The premiums are difficult to sell,” it said. The company expects the market to pick up closer to mid-2027, when there is greater clarity on the EU’s Industrial Accelerator Act, an initiative to decarbonize industry.
The producer added that there was already demand from the construction industry in the Netherlands. In particular, companies involved in bridge renovation were interested in the steel.
In its weekly assessment, Fastmarkets put the premium for green flat steel for the Northern European domestic market, delivered ex-works, over the hot-rolled coil (HRC) index at €120–200 per tonne on October 30. The low end of the range fell from €170 per tonne a week earlier, on October 23, while the high end remained at €200.
Fastmarkets defines green steel as steel with total Scope 1, 2 and 3 greenhouse gas emissions of no more than 0.8 tonnes of CO₂ per tonne of steel produced. Scope 1 covers a company’s direct emissions and those of its subsidiaries; Scope 2 covers indirect emissions from the energy it uses; and Scope 3 covers indirect emissions from sources outside the company’s control.
Meanwhile, the Fastmarkets index for hot-rolled coil on the Northern European domestic market, ex-works, averaged €746.38 per tonne in October. This was €2.17 higher than September’s figure of €744.21 per tonne.
An Austrian supplier planning to start producing green steel early next year was offering it at a premium of €120–150 ($133.83–167.28) per tonne. According to a company source, some demand came from original equipment manufacturers as well as from the construction industry in Northern Europe.
A Swedish supplier, which also plans to start production in 2027, was offering a premium of €200 per tonne.
According to available information, a German supplier set a premium of €180–250 per tonne for future production.
Suppliers already equipped to produce green flat steel were offering premiums in the range of €170–300 per tonne.
Some deals for product testing and project deliveries were concluded at premiums of €150–200 per tonne. Market participants said spot sales were made at even lower prices.
Green steel deals are currently concluded mainly directly between producers and end buyers. Traders are avoiding taking positions because of weak demand for the product.
Author: Vlada Novokreshchenova
fastmarkets.com
