Understanding the demand for Green Steel, page-438

Bulk Buys: Green steel is turning real as Fastmarkets launches Asian green steel premium index - *



Japanese and Korean steelmakers are seeing premiums as high as US$300/t selling low carbon steel in a sign the long-touted green steel industry is finally awakening. On Friday, Fastmarkets launched an index for what it says is its first green steel premium, tracking premiums offered by customers for a swag of products with Scope 1, 2 and 3 emissions below 1.3tCO2/t from major steelmakers in Japan, Korea and Taiwan. It’s known as the (and this is a mouthful) Fastmarkets weekly green steel, flat-rolled, regional differential to cfr Vietnam HRC index, Japan/South Korea/Taiwan.

“You can’t escape green steel, basically,” Fastmarkets regional editor Asia Paul Lim told *.“Green steel is something which will continue to grow in the future in terms of momentum.

“The key on the sentiment to use green steel especially is a lot of big OEMs, including automotive producers, are looking for certified green steel.

“You can say Asia was a little bit late in terms of coming to the market with green steel, and instead previously it was the European steelmakers, European carmakers, which actually had an earlier lead time on this.“

But now, the Japanese and South Koreans are the ones in Asia making a move on this first.”Steelmakers are using a range of methods to produce steel that falls under this 1.3t limit, including electric arc furnaces with scrap steel feed, carbon capture, tweaked or enlarged blast furnaces to replace older infrastructure as well as carbon credits.