Steel shipments from Asia to Europe have slowed sharply in recent months as uncertainty around the EU's Carbon Boundary Regulation Mechanism (CBAM) curbs buyer interest, plant sources, traders and other market participants told Platts, part of S&P Global Energy, a week before December 8.
.European buyers are mostly avoiding steel shipments from Asia, awaiting clarity on CBAM-related requirements, several sources at factories and trading floors said.
"It's not that the factories don't want to offer. The fact is that European buyers are reluctant to order goods from Asia right now due to the longer lead time," said a source at the Indian factory. The source added that although some factories tried to reassure customers by offering deliveries in December, overall demand remained low.
According to the S&P Global Energy global trade analytical center, Indian steel exports to the EU in the first nine months of this year decreased by 33.4% and amounted to about 2.4 million tons compared to the same period in 2024.
China remained the largest exporter, increasing outflows by 29.15% in the first nine months of this year to about 3.2 million tons.
.According to GTAS, steel exports from Indonesia to the EU increased by 145.6% to 1.7 million tons over the same period.
A source from a large Indonesian factory said they had already provided CBAM-related data to the authorities, adding that most of the information circulating in the market remains unofficial or has been leaked online.
According to the source, due to uncertainty, the plant refrains from offering lower margins to Europe, similar to manufacturers in India, Vietnam and Malaysia.
Cooperation with the EU continues
Despite the slowdown in growth, Asian factories continue to cooperate with EU buyers, given Europe's status as a key export market, especially for hot-rolled coils (HRC), factory sources said.
A source at the Indian plant said that factories are still offering products in Europe, despite weak demand and margin pressure, as profitability remains higher than in other regions. The source reported on the plant's latest deal with Southern Europe, concluded in late November at a price of $575 per ton CFR, with a freight of $50-60 per ton.
.For comparison, according to Platts, Indian offers to Vietnam over about the same period were valued at $485 per ton CFR, while offers to the Middle East were valued at $510 per ton CFR.
Platts estimated imports of HRC in Northern Europe at 500 euros per ton CIF, Antwerp, December 3, stable from day to day, and in Southern Europe at 495 euros per ton CIF, which
