European importers of rolled steel and semi-finished steel products are awaiting clarifications on the CBAM parameters outlined in a leaked European Commission document that was distributed to the market last week, they told Kallanish.
Sources report that with the existing calculation criteria, it is still difficult to determine the actual cost of imports, especially since the figures currently available are the default values.
If importers can demonstrate the actual values, then they should be applied instead, one source notes.
Another market participant estimates that CBAM costs for materials from "bona fide" manufacturers or those with relatively low emissions can range from 30 to 60 euros per ton, depending on the source. Large buyers are currently working closely with their suppliers from third countries, effectively "educating" them on how to report on every element of their production process. Asian plants must provide responsible and, above all, verifiable data on all stages of production, starting with energy use and its type.
CBAM rules require an accredited expert to conduct at least one physical inspection of the facility per year to verify the accuracy of the information provided. Industry discussions also indicate that virtual tours may be added in addition to physical checks.
Regarding the risk of false declarations, the buyer of the rolls says that it is in the best interests of suppliers to provide accurate information, as many items can be easily verified. Several Asian suppliers intend to continue their operations in Europe, and incorrect reporting will quickly damage their reputation and market share.
Some countries are expected to face significant CBAM charges, especially India, where coal-based primary steel production is widespread. Using default values for some countries of origin, including India, will result in significant costs, so it is desirable that suppliers provide accurate data.
Another roll buyer notes that CBAM actually acts as an additional duty, complicating imports. However, the most serious obstacle to foreign supplies remains the EU quota system. The trading company declares: "We're working in a daze."
CBAM parameters and estimated values remain unclear, and the list of accredited inspectors who will check supplier emissions has not yet been published. Customers report confusion and unwillingness to place new orders. The European market is calm, and with sufficient steel availability
