The European market sees a stable premium for green steel in the domestic flat product sector, reflecting rising demand for low-emission materials. European steelmakers are investing in green steel projects to meet regulations and cut emissions. Demand, especially from the automotive industry, is expected to continue growing. European steelmakers have been offering carbon-accounted hot-rolled coils using various methods such as electric-arc furnace production, hydrogen and fossil-free fuel production, mass balance calculations, or the application of carbon credits and offsets. However, some buyers are hesitant to pay extra for material that doesn't have certified lower emissions. Steelmakers have sought premiums ranging from €100-300 per metric ton for HRC with CO₂ emissions below 2.1 metric tons per metric ton of steel produced. Mills are willing to accept low premiums or even close to zero to encourage more buyers to engage with these new products.Buyers have been cautious and awaiting guidance from the European Commission before making such purchases. Those who have made deals for carbon-accounted HRC have paid premiums in the range of €50-100 per metric ton. Steelmakers like Arvedi, ArcelorMittal Spain, SSAB, and Salzgitter have been actively offering certified carbon-accounted HRC through various production routes.Platts, a division of S&P Global Commodity Insights, launched daily carbon-accounted HRC steel assessments in May. These assessments reflect trade in HRC with certified carbon emissions of 2.1 metric ton of CO₂ or less per metric ton of steel produced, excluding offsets or voluntary carbon credits. The assessments consider emissions from various activities throughout the steel production process, including mining, processing, hot metal production, and transportation (Scopes 1, 2, and 3).The Northwest Europe HRC Carbon-Accounted Steel Premium (CASP) assessment provides an all-in price for carbon-accounted steel in the region. While different production routes result in varying CO₂ emissions, market participants generally agree that the 2.1 metric ton of CO₂ per metric ton of HRC represents the current "low-carbon" threshold for blast furnace production. As electric-arc furnace production, hydrogen-based processes, and fossil-free production increase, this threshold is expected to decrease further. The Platts assessments aim to bring transparency to the carbon-accounted steel market and provide relevant price data.
The European market sees a stable premium for green steel in the domestic flat product sector, reflecting rising demand for low-emission materials. European steelmakers are investing in green steel projects to meet regulations and cut emissions. Demand, especially from the automotive industry, is expected to continue growing. European steelmakers have been offering carbon-accounted hot-rolled coils using various methods such as electric-arc furnace production, hydrogen and fossil-free fuel production, mass balance calculations, or the application of carbon credits and offsets. However, some buyers are hesitant to pay extra for material that doesn't have certified lower emissions. Steelmakers have sought premiums ranging from €100-300 per metric ton for HRC with CO₂ emissions below 2.1 metric tons per metric ton of steel produced. Mills are willing to accept low premiums or even close to zero to encourage more buyers to engage with these new products.Buyers have been cautious and awaiting guidance from the European Commission before making such purchases. Those who have made deals for carbon-accounted HRC have paid premiums in the range of €50-100 per metric ton. Steelmakers like Arvedi, ArcelorMittal Spain, SSAB, and Salzgitter have been actively offering certified carbon-accounted HRC through various production routes.Platts, a division of S&P Global Commodity Insights, launched daily carbon-accounted HRC steel assessments in May. These assessments reflect trade in HRC with certified carbon emissions of 2.1 metric ton of CO₂ or less per metric ton of steel produced, excluding offsets or voluntary carbon credits. The assessments consider emissions from various activities throughout the steel production process, including mining, processing, hot metal production, and transportation (Scopes 1, 2, and 3).The Northwest Europe HRC Carbon-Accounted Steel Premium (CASP) assessment provides an all-in price for carbon-accounted steel in the region. While different production routes result in varying CO₂ emissions, market participants generally agree that the 2.1 metric ton of CO₂ per metric ton of HRC represents the current "low-carbon" threshold for blast furnace production. As electric-arc furnace production, hydrogen-based processes, and fossil-free production increase, this threshold is expected to decrease further. The Platts assessments aim to bring transparency to the carbon-accounted steel market and provide relevant price data.
