Italian distributors and buyers call CBAM values "unworkable"; verification of actual emissions will be a priority in 2026
Italian slab manufacturers and slab import market participants called the proposed default Carbon Emissions Control Mechanism (CBAM) "unworkable" and said their priority for 2026 would be to obtain verified factual emissions data rather than relying on default values.
Final reference values and default values
In accordance with the EU CBAM steel regime, reference values are standardized carbon intensity inputs used to calculate the cost of imported emissions based on typical production patterns.
The default values are preset emission figures used in cases where verified actual emission data is not available, and are intentionally set higher to encourage reporting.
In the latest drafts of the European Commission's CBAM documents, the final default values for slabs for countries of origin such as China have been set at higher levels than in previous drafts, and very high default values for some major slabs have been confirmed by exporting countries, Fastmarkets reported on Wednesday, December 10.
Russia is the largest supplier of slabs to Europe, along with other key exporters including China, Indonesia, India, Brazil and Vietnam. Based on the final default CBAM values for 2026 calculated by Fastmarkets, the estimated cost of importing slabs using default emission intensity coefficients is approximately 144 euros (168 US dollars) per ton for China, about 149 euros per ton for Russia and about 230 euros per ton for India and 541 euros per ton for Indonesia, while the default prices for Brazil are calculated at a relatively lower price - 22 euros per ton.
The latest documentation also indicates future annual allowances starting in 2026, with default values increasing annually to 10% in 2026, 20% in 2027, and 30% from 2028, reflecting the phased implementation of CBAM and the reduced availability of free EU emissions allowances. Trading System (ETS).
‘Unworkable’ default values and checking for actual emissions
A source in one of the manufacturers of rolled products said that the benchmarks did not come as a surprise to market participants, but added that the final default values, taking into account the margins, were a "blow" to the Italian markets of slabs and thick-rolled products, which are heavily dependent on the import of slabs as raw materials for the production of flat rolled products.
"The final defaults practically make CBAM reporting the default