Fastmarkets assessed the Northern European green flat-steel premium at €120–200/t on 30 October, down from €170–200/t on 23 October. The lower end fell by €50/t, while the upper end was unchanged, as automotive manufacturers held back from paying more for lower-emission material.
Buyers weigh price against emissions goals
Automotive manufacturers showed little interest in substantial premiums, even as they remained under pressure to reduce the carbon footprints of their supply chains. Construction demand offered selective support, particularly in the Netherlands, where bridge reconstruction projects created opportunities for lower-carbon steel.
Fastmarkets defines the material in its assessment as steel with combined Scope 1, 2 and 3 emissions of no more than 0.8 tCO₂/t. That commercial classification is separate from the European Union’s Carbon Border Adjustment Mechanism (CBAM), which uses a distinct regulatory methodology to calculate installation-specific embedded emissions.
Future supply carries varied premiums
Some producers are preparing new lower-emission capacity for 2027, with expected premiums varying by supplier. An Austrian supplier indicated €120–150/t, a Swedish producer approximately €200/t, and a German supplier €180–250/t for future output.
Producers with existing lower-emission supply capacity offered a wider range of premiums. Some trial and project purchases were concluded at approximately €150–200/t, reflecting a European market still developing consistent purchasing standards for low-emission steel.
CBAM value and green premiums remain distinct
The weaker premium raises questions about commercial returns on emissions-reduction investments for steel producers in Serbia, Bosnia and Herzegovina, and Türkiye. Lower embedded emissions can reduce a buyer’s exposure to CBAM, but do not automatically secure an additional green-steel premium.
That distinction matters to investment decisions involving electric arc furnaces, direct-reduced iron, renewable electricity and other decarbonisation technologies. European buyers may increasingly favour verified low-emission suppliers without agreeing to price increases sufficient to finance every production upgrade. Regulatory carbon-cost avoidance and voluntary premiums for cleaner steel therefore remain separate sources of commercial value.
