11/28/2025
EU - GREEN STEEL : SPARSE TRADING, MINIMAL DEMAND
Green steel premiums remained steady in Europe in this week amid tepid demand while the industry awaits regulatory developments.
European green flat steel is defined as “steel produced with Scope 1, 2 & 3 emissions at a maximum of 0.8 tonnes of CO2 per tonne of steel.”
During the assessment week, premiums for steel meeting these criteria were indicated at €200-210 per tonne from major European suppliers — they have been largely stable over the past few months.
Two suppliers said they would be willing to knock off no more than €20-30 per tonne from their offers of €200 ($232) per tonne to around €170-180 per tonne.
For larger volumes of 3,000 tonnes or more, buyers said green steel could be booked with lower premiums of around €100-130 per tonne. One major distributor argues that €100 per tonne premiums was “maximum mills could achieve under current market conditions.”
Another buyer echoed that concern, pointing out that “three-digit premiums were only possible for long-term contracts or some project business,” suggesting an even lower range of €70-80 per tonne.
Such wide range once again proved that despite green steel has been “on the table” for a while now, the market was still at early stages and demand remained niche and sporadic.
“It’s the same old story — demand [for green steel] is coming from the Nordics, they are ready to pay, they have projects. But even there we are not talking about booming volumes,” a seller in Europe said.
Another mill source in Northern Europe told that while producing green steel should be commercially viable, current production costs make it unrealistic. They added that passing these higher costs on to customers is very challenging in today’s economic environment.
A German steel service center told that buyers are increasingly focused on the Carbon Border Adjustment Mechanism (CBAM) rollout, noting that the various leaked drafts have only added to the confusion. They also pointed to uncertainty around the timeline for implementing the new trade regime, which is expected to cut imports by 50%. In such conditions, paying a premium for green steel is difficult to justify unless it is tied to a specific project, they said.
Another buyer noted that the rollout of the CBAM from 2026 could help stimulate demand for green steel, but not immediately.