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A mill source gave an offer for flat steel with less than 0.1 tonne of CO2 per tonne of steel at €300 per tonne, but added that demand for “nearly 100% decarbonized steel is very low, since such premiums are way too high for the most buyers”, according to Fastmarkets.
An end-user source said that demand for green steel remains low and rather sporadic because OEMs currently do not feel much pressure from authorities to use decarbonized steel.
But this is expected to change gradually in the upcoming years, with the EU’s Carbon Border Adjustment Mechanism (CBAM) being phased in and free Emissions Trading System (ETS) allocations being phased out.
Notably, sources estimated that by 2030, 30% of the European steel market will be green (zero or close to zero emissions). fastmarkets
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