SSAB foresees premium for recycled-content steel

Sweden-based steel producer SSAB says its SSAB Zero recycled-content steel made in electric arc furnaces (EAFs), when made with fossil-free electricity and biogas, results in steel products with virtually no fossil carbon emissions.

The company’s President and CEO Martin Lindqvist has indicated to investors that SSAB expects soon to be able to charge a premium for its Zero steel, especially in Europe.

“We have an exciting time ahead of us, and SSAB has a unique possibility to strengthen our competitiveness, which in turn creates value for all the company’s stakeholders,” Lindqvist says.

SSAB estimates a gross premium on steels made with almost zero fossil CO₂-equivalent emissions will be around 300 euros ($325) per metric ton, “against the backdrop of the price of carbon dioxide emissions in Europe, higher production costs and the value added for the customer.”

In a 2022 interview with Recycling Today, Chief Financial Officer Theresa Wagler of Indiana-based Steel Dynamics Inc. (SDI) said a future when low-carbon and recycled-content steels receive a premium is on SDI’s radar.

Lindqvist says support for low-carbon steel can be further improved. “We need support from society, especially with regard to effective permit processes and access to electricity at the right time. It is also important with a relatively level playing field across the EU regarding state aid for the transition in the steel industry,” he says.

SSAB says it aims to deliver 40,000 metric tons of SSAB Zero in 2023, ramping up to around 100,000 tons in 2025. Currently, SSAB makes steel with scrap-fed EAFs and by using iron ore in blast furnaces.

The company also is increasing its overall steelmaking capacity, taking steps that will allow SSAB to continue growing within high-strength steels. "SSAB Special Steels aims to deliver 2.2 million metric tons of high-strength steels in 2030. During 2022, shipments amounted to 1.4 million metric tons," it adds.

The company has announced one buyer for its low-carbon steel in the form of Sweden-based Volvo Group. “We are encouraged by the continuous development of low-carbon solutions,” says Martin Lundstedt, president and CEO of Volvo Group. “We are making big strides forward with the introduction of low-emission materials made from recycled steel with SSAB Zero in our products.”

In the United States, SSAB also has announced a low-carbon steel supply agreement with waste and recycling truck maker McNeilus and its parent company Oshkosh Corp.

SSAB operates steel mills in Sweden, Finland and in Alabama and Iowa in the United States.