Green Steel Procurement Remains Sector-Specific Amid Growing Sustainability Pressure

Green Steel Procurement Trends Reveal Sector-Specific Demand

Green steel adoption remains limited but shows early momentum, according to recent Green Steel Survey. Only a minority of European buyers currently trade green steel, with around 40% planning to start within six months. However, this activity remains constrained to select products and industries. The automotive and renewables sectors lead the way, driven by strong sustainability commitments. Meanwhile, sectors like construction lag due to concerns over cost and pricing premiums. The survey also highlights how difficult market conditions and high green premiums push green steel down buyers’ priority lists.

Challenges for Green Steel Adoption and Market Impact

The survey identified cost as the biggest barrier to green steel sales, with pricing models varying between negotiated premiums and price-plus approaches. Many customers hesitate once they learn about additional costs, emphasizing that daily purchasing decisions still favor lower-priced steel. Another key issue is the lack of clear green steel definitions, which risks undermining trust due to perceived greenwashing. Currently, flat products dominate green steel sales, with hot rolled coil being the most traded, while long products such as rebar and wire rod see slower adoption. Upcoming EU regulations like the Carbon Border Adjustment Mechanism (CBAM) and phased-out free emission allowances aim to accelerate market shifts by internalizing carbon costs into steel pricing.

SuperMetalPrice Commentary:

The green steel market reflects an industry in transition. Despite growing environmental pressure, cost concerns and uncertain standards currently limit broader adoption. Regulatory frameworks such as the EU ETS and CBAM will be pivotal in shaping demand by making carbon pricing more transparent and mandatory. Companies that proactively invest in sustainable steel production and clarify green claims will lead this evolving market. As buyer awareness and policy incentives grow, green steel could move from niche to mainstream—transforming global steel markets in the coming years.