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 of the range fell by €50/t while the upper end was unchanged, as automotive manufacturers limited purchases of lower-emission material.
Buyers weigh price against emissions goals
Automotive manufacturers showed little interest in paying substantial premiums, although they remained under pressure to reduce the carbon footprints of their supply chains. Construction offered selective support for demand, particularly in the Netherlands, where bridge reconstruction projects created opportunities for lower-carbon steel.
Fastmarkets defines the assessed steel as material 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 applies a distinct regulatory methodology to installation-specific embedded-emissions calculations.
Future supply carries varied premiums
Some producers are preparing new lower-emission steel capacity for 2027, with expected premiums varying by supplier. An Austrian supplier indicated €120–150/t for future output, while a Swedish producer indicated approximately €200/t and a German supplier €180–250/t.
Producers with existing lower-emission supply capacity offered premiums across a wider range. Some trial and project purchases were concluded at approximately €150–200/t, as the European market continues to develop consistent purchasing standards for low-emission steel.
CBAM value and green premiums remain distinct
The weaker premium raises questions about the 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.
The distinction is relevant to investment decisions involving electric arc furnaces, direct-reduced iron and renewable electricity, as well as other decarbonisation technologies. European buyers may increasingly favour verified low-emission suppliers without agreeing to price increases sufficient to finance every production upgrade. Avoiding regulatory carbon costs and earning voluntary premiums for cleaner steel remain separate sources of commercial value.