Published by:Alesha Alkaff<>
11 Jun 2025 @ 20:21 UTC

The US green steel market was dormant in the assessment period to Wednesday June 11, with sources reporting continued resistance toward paying a green steel premium. Fastmarkets’ weekly green steel domestic, differential to US HRC, fob mill was flat at $0 per short ton on Wednesday.
Fastmarkets’ domestic green steel base price, hot-rolled coil fob US mill stood at $877.30 per ton. The price is the average of the most recent US Midwest and South HRC prices 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.
There does not seem to be any desire [among steel buyers] to pay a green steel premium. That’s just the way it is, Phil Bell, president of the Steel Manufacturers Association, told Fastmarkets in an interview.
The fact of the matter is the steel that’s produced by America’s [electric arc furnace (EAF)] producers is already low emissions, it’s lower than anything in the world, Bell added.
In the US, EAFs account for over 70% of steel production, while the remaining 30% accounts for steel production via blast furnaces (BFs).
Conversely, 70% of global steel is produced via blast oxygen furnaces, with electric furnaces accounting for the balance, according to a report by the Organization for Economic Co-operation and Development in May.
Looking ahead, EAF steelmaking in the US may increase to 80% by the end of the decade, Bell previously told Fastmarkets in March.
The method of steel production could impact a company’s carbon emissions level, with EAFs emitting lower levels of carbon due to its use of electricity, while BFs emit higher carbon dioxide due to its reliance on coal.
Many steel market participants have also been tracking US President Donald Trump’s decision to double tariffs on steel imports, which took effect on June 4.
Certainly, tariffs have taken center stage with many customers, a mill source told Fastmarkets.
The doubled tariffs have been taking up most of my time the last couple weeks, an original equipment manufacturer said. It feels like we are gaining some momentum on our projects regarding green material selection, but there is nothing concrete yet, in terms of what we’re willing to pay, what our customers are willing to pay.
In Washington DC, House Republicans passed what Trump has called the Big Beautiful Bill, which calls for the rollback of many clean energy tax credits established under the Biden Administration’s Inflation Reduction Act (IRA).
The bill is currently under consideration in the Senate, where changes to the legislation are expected with an aim for a July 4 deadline.
A group of 13 House Republicans urged the Senate to adjust the changes to the IRA’s clean energy tax credits.
There remains significant room for improvement in preserving the clean energy tax credits, Representative Jen Kiggans said in a Friday June 6 letter to the Senate.
A strong energy policy is not just a matter of economics — it’s a matter of national strength. Without these key improvements, we risk sidelining American workers, stalling clean energy innovation, and ceding our competitive edge, Representative Brian Fitzpatrick said in the letter.
Green steel market in Europe, Asia The green steel spot markets across Europe were sluggish, with market participants expecting minimal changes, sources said on Thursday June 5.
Trading remains very limited for now. We sell some small tonnages here and there, but the volumes are [minimal], and most of them go to the Nordic States, a mill source said.
A major buyer reported that they have not made any green steel booking for a few months due to poor market fundamentals.
Fastmarkets’ methodology defines European green steel as steel produced with Scope 1, 2 & 3 emissions at a maximum of 0.8 tonne of CO2 per tonne of steel.
Fastmarkets’ weekly assessment of the green steel, domestic, flat-rolled, differential to HRC index, exw Northern Europe was €170-200 ($195-230) per tonne on Thursday, flat week on week.
Fastmarkets’ assessment for the green steel, differential to steel reinforcing bar (rebar), domestic, delivered Northern Europe was unchanged at €20-30 per tonne on Wednesday.
Meanwhile, green steel producers in East Asia 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 $96-204 per tonne on Friday, falling by $2-4 per tonne from $100-206 per tonne last week.
Fastmarkets’ assessment of the green steel base price, HRC, cfr Vietnam, weekly inferred, which is calculated by adding new spreads to Fastmarkets’ Japan, Korea and Taiwan-origin HRC prices, was $576-714 per tonne on Friday, falling by $7-24 per tonne from $600-721 per tonne last week.