Market participants who gathered in Luxembourg on July 3 for the 75th anniversary conference of the European Steel Distributors Association EUROMETAL expressed growing dissatisfaction with the pace and predictability of European steel production policy.
As the region struggles with weak demand, increasing regulatory burdens, and ongoing participants have warned of over-regulation and insufficient protection of the refining sector due to the uncertainty surrounding the Carbon Boundary Regulatory Framework, or CBAM.
The conference participants were cautiously realistic, calling for decisive EU action to protect trade and decarbonization amid volatile prices and geopolitical risks.
The implementation of CBAM raises concerns about cost transparency and compliance
While many agreed that CBAM is structurally important to Europe's climate ambitions, traders and distributors expressed concern about the lack of clarity regarding emission benchmarks, intermediate costs, and the long-term financial burden on European companies. supply chains.
"Right now, no one can estimate how much profit they will make when CBAM is launched," one German distributor told Platts, part of S&P Global Commodity Insights, on the sidelines of the event. "The price can vary up to 100 euros per ton, which makes planning extremely difficult."
Participants noted that buyers, especially in sectors such as automotive and home appliances, are asking for fixed prices, but are unwilling to put up with the potential volatility associated with CBAM. Several speakers highlighted the risk of supply disruptions in the first quarter of 2026, when all CBAM costs are expected to materialize, forcing buyers to pay unexpected premiums.
On July 3, Platts valued hot—rolled coils from Northwest Europe (HRC) at 555 euros per ton at the Ruhr plant, and Southern European HRC at 540 euros per ton from the Italian plant.
Distribution requires a stronger role in politics
A German service center source warned that excessive regulation and indecision were undermining confidence in Europe's ability to achieve its climate and trade goals.
"Sometimes we just need a yes or no from regulators," he said. "CBAM is not helping in its current form, and 80-90% of this industry is built on small and medium-sized enterprises that cannot handle this uncertainty alone."
Other distributors share this view, arguing that although "green steel" has real decarbonization potential, consumer demand remains weak due to
