The EU’s carbon border adjustment mechanism (CBAM), which took effect on 1 January, together with the bloc’s Steel and Metals Action Plan, is set to meaningfully restrict steel import penetration in the region. The measures are likely to result in a sustained increase in intra-EU steel trade from 2026, reducing the influence of global benchmarks on domestic pricing, a dynamic similar to the US market’s decoupling following the introduction of Section 232 duties.
Key topics covered in the paper:
- CBAM: High uncertainty, rising cost pressures
- Quota tightening to further restrict imports
- Improving EU demand prospects
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