Published by: Alesha Alkaff<>
26 Mar 2025 @ 20:14 UTC

The US green steel market was dormant in the assessment period to Wednesday March 26, with sources tracking President Donald Trump’s reciprocal tariffs, set to take effect on April 2.

Fastmarkets’ weekly green steel domestic, differential to US HRC, fob mill remained at $0 per short ton on March 26.
Fastmarkets’ domestic green steel base price, hot-rolled coil fob US mill, weekly inferred stood at $945 per ton on Wednesday, down from $950.60 per ton the prior week. The green steel base price is the average of the most recent US Midwest and US South HRC indices plus the US green steel differential.
Fastmarkets’ carbon threshold is 0.7 tCO2e per 1 tonne of steel. Renewable energy credits and mass balancing can be used for carbon calculation, but carbon-offset credits are explicitly disallowed.
Recently, Trump hinted at potentially granting breaks on reciprocal tariffs during a press conference on Monday March 24.
Well, I may give a lot of countries breaks, Trump said, April 2 will be a big day. That’ll be reciprocal day.
A manufacturer source noted that business has definitely slowed down while we’re in this holding pattern until April 2. Customers do not want to order trucks with tariffs looming and price uncertainty.
I haven’t been having any conversations with the mills lately in regard to green steel. [There is] no real need for us yet, until we identify how much volume we are targeting for it, they added.
Despite the looming threat of tariffs, which include tariffs on automobiles, South Korean auto producer Hyundai Motor Group announced plans to invest $5.8 billion in a new steel manufacturing facility in Louisiana that will produce ultra-low carbon steel.
A mill source told Fastmarkets that there is a global excess capacity of steel that could hinder decarbonization efforts and premium acceptance in the US.
I don’t believe the consumer is willing to pay more for additional reductions [in carbon emissions] when China is being allowed to build additional coal-based capacity and then dump it across the globe, the mill source said.
The method of steel production could impact a firm’s carbon emissions level, with production via mini mills, or electric-arc furnaces (EAFs), emitting lower levels of carbon due to their use of electricity, while integrated mills, or blast furnaces (BFs), rely on coal and emit higher carbon dioxide levels.
The EAF production route accounts for 70% of steel production in the US, compared with a 26% global average.
Green steel market in Europe, Asia unchanged Meanwhile, demand for green flat steel across Europe was patchy, sources told Fastmarkets on Thursday March 20.
Fastmarkets’ methodology defines European green steel as steel produced with Scope 1, 2 & 3 emissions at a maximum of 0.8 tCO2e per tonne of steel.
Fastmarkets’ assessment for green steel domestic, flat-rolled, differential to HRC index, exw Northern Europe was €150-200 ($163-217) per tonne on Thursday, unchanged week on week.
Sustainability has taken a back seat in the European steel market, an industry source said.
A mill source told Fastmarkets that while they receive many inquiries for green steel, only a fraction of that leads to sales.
In East Asia, green steel producers have kept their premiums at 20-40% against base prices for high-grade flat steel, sources told Fastmarkets.
Fastmarkets’ weekly calculation of the green steel import, differential to HRC index, cfr Vietnam, which calculates the price difference between flat-rolled green steel and the CFR Vietnam price, was $103-208 per tonne on Friday March 21, up by $3-4 per tonne from $100-204 per tonne a week earlier.
Fastmarkets’ assessment of the green steel base price, hot-rolled coil cfr Vietnam, weekly inferred, which is calculated by adding new spreads to Fastmarkets’ Japan, Korea and Taiwan-origin HRC prices, was $618-728 per tonne on Friday, up by $14-18 per tonne from $600-714 per tonne a week earlier.