Fastmarkets ready for US green steel acceleration with much-needed HRC assessments

23 May 2024

Fastmarkets, one of the industry's leading cross-commodity price-reporting agencies is proud to announce the launch of US green hot-rolled coil pricing. This new North American offering complements Fastmarkets' green HRC prices across Europe and Asia, providing both a differential and a base price in these major markets.

The demand for green steel is accelerating rapidly, particularly within the automotive and construction sectors in the United States. By launching a US green HRC price, Fastmarkets positions itself ahead of significant auto industry purchases expected next year and anticipates a surge in steel spending following the November presidential election.

The US steel industry has long touted its green credentials, primarily due to its high proportion of electric arc furnaces Mills and major end-use buyers, such as automobile manufacturers, have recently recognized the potential to charge a premium for green steel. With major deals already secured between domestic mills and auto producers, there is an increasing need for an independent price assessment to facilitate these transactions.

Andrew Wells, editorial and pricing director for ferrous metals and mining at Fastmarkets, commented: "As the market matures, both mills and buyers will require a reliable instrument to finalize contracts. We aim to be that standard."

The first US green HRC price will cater primarily to mills and auto-related buyers. However, there is growing interest from building developers who are increasingly seeking green steel solutions.

Felix Bello, US steel analyst at Fastmarkets, added: "To appreciate the significance of quantifying the value of green steel, we must recognize that steel is the most ubiquitous and recycled material globally. It permeates our daily lives, appearing in buildings, bridges, ships, cars, bicycles, appliances and even paper clips. In these roles, it provides nearly 6 million direct jobs and accounts for almost 8% of CO2 emissions, positioning it as a critical factor in addressing carbon emissions."

Join Fastmarkets at the International Iron Ore & Green Steel Summit 2024, on June 24-26 in Vienna, Austria, to gain insights from industry leaders, leverage market data for strategic decisions and seize opportunities in green steel innovation.