European premiums for "green" steel have not changed amid the slow pace of trading; the impact of politics remains remote
Trading in European "green" steel markets was slow in the week to Thursday, January 15, but sellers expect policy changes to boost demand later this year, Fastmarkets sources said.
Customer interest in steel produced with reduced carbon dioxide emissions remained limited across Europe during the evaluation week.
Sources in the sellers reported a "very small number of requests" for "green steel" in recent weeks, but partially attributed this to the winter holidays in Europe.
Nevertheless, sellers expressed cautious optimism, expecting demand for "green" steel to increase in 2026, supported by regulations.
Several sources noted that eco-friendly steel is increasingly attracting attention after recent decisions related to the EU Carbon Boundary Regulation Mechanism (CBAM) and the proposed regulation of vehicle equipment.
.Market participants added that although the introduction of CBAM and the gradual abolition of carbon quotas in Europe are expected to support demand for environmentally friendly steel, any significant impact in the near term is unlikely.
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 carbon dioxide per ton of steel produced.
Offers for steel conforming to these specifications were received across Europe at a minimum price of 200 euros ($232) per ton.
However, several supplier sources agreed that with reasonable supply volumes, lower premiums of about 150-170 euros per ton could be achieved.
A supplier source said that surcharges below 150 euros per tonne do not apply to emissions thresholds below 800 kg of CO2 per tonne.
But buyers gave lower estimates in the range of 70-150 euros per ton during the evaluation week.
A customer source said that three-figure surcharges for "eco-friendly steel" are only possible in project-related transactions, noting that higher surcharges are usually limited to government procurement and are otherwise unavailable.
At the same time, the end user of automotive products informed Fastmarkets that it ensures the production of environmentally friendly steel through acquisition agreements with future manufacturers of direct reduction cast iron in electric arc furnaces (DRI — EAF), arguing that environmentally friendly scrap steel currently available on the market cannot be used. considered "completely green".
Such comments emphasize that the lack of generally accepted standards