The European market for green flat steel products remained stagnant as of December 5, 2024. Despite challenging conditions, trading companies are focusing on securing long-term supplies of green steel and raw materials. Willingness to pay premiums for steel with reduced carbon emissions remains limited among European buyers. The automotive industry, a key consumer, has seen a slowdown in demand due to the broader economic downturn.
Market participants noted a lack of clarity and standards for green steel in Europe, which is slowing its adoption. Premiums for green steel, defined as steel produced with a maximum of 0.8 tonnes of CO2 per tonne, were stable at €80-200 per tonne. However, some bids were rejected by sellers, indicating a gap between buyer expectations and achievable values.
Despite the current market challenges, some buyers continue to invest in green steel, anticipating a rise in demand for low-carbon products in the future. Recent collaborations, such as the agreement between Scandinavian Steel and GreenIron, highlight ongoing efforts to promote sustainable steel production.
