The volume of supply on the European market this year will increase to 1.51 million tons
Demand for green steel in Europe is expected to reach 3.68 million tons in 2023, while supply on the European market will increase to 1.51 million tons. This is stated in the relevant study by ResearchAndMarkets, BusinessWire reports.
The demand for green steel is driven by two main factors: Scope 3 emission reduction targets and end-user demand for these products, which turned out to be wider than originally forecast.
Analysts also point to several key factors that influence the green steel market.
The market is being driven by the growing penetration of low-carbon products, as the focus on environmental issues has led to an increase in demand for green steel, which is in line with decarbonization efforts. Investments by governments and financial institutions are expected to drive market growth.
At the same time, the current European energy crisis has become a challenge for the steel industry, and decarbonization efforts may increase the industry’s exposure to electricity and gas prices.
In terms of trends, the green steel market is developing rapidly, and new technologies are expected to emerge after 2025. Green hydrogen and direct reduction of iron (DRI) plants powered by renewable energy are set to transform the industry.
ResearchAndMarkets also listed the key players in the European green steel market. It is headed by ArcelorMittal, Thyssenkrupp, Salzgitter, SSAB, Tenaris, Tata Steel Europe, Swiss Steel Group, Vanir Green Industries, GFG Alliance, Voestalpine and H2 Green Steel.
Europe’s green steel industry is poised for future growth, analysts say, with key producers such as Thyssenkrupp and ArcelorMittal in Germany exploring hydrogen as a replacement for coking coal.
As supply expands and green steel becomes the norm, its price competitiveness is expected to decline.
As GMK Center reported earlier, financial support and a large supply of green electricity are two main problems for the steel industry to achieve carbon neutrality. This opinion was expressed by company managers and experts when discussing the low-carbon steel market at a specialized forum in China.