New EU rules could cut steel import quotas by around 47% compared with the previous safeguard system and raise the tariff on imports above quota from 25% to 50%. The changes were discussed on November 5 at a conference held as part of Ecomondo 2026 in Rimini. Participants also warned that rising steel costs could weaken the position of European processors and manufacturers of finished goods.
The conference, “ETS and CBAM: What impact will they have on raw materials and steel?” was organized by the publication siderweb and RICREA, the Italian national consortium for the recycling and recovery of steel packaging. The discussion focused on the EU’s Carbon Border Adjustment Mechanism (CBAM), whose definitive phase began on January 1, 2026, and the gradual phase-out of free allowances under the European Union Emissions Trading System (EU ETS), scheduled to continue through 2034. These mechanisms are intended to encourage industrial decarbonization and reduce the risk of production shifting to countries with less stringent environmental rules.
The planned import measures also include a melt and pour requirement: importers must identify and verify the country where the steel was melted and poured. This will strengthen requirements for tracing product origin.
According to Stefano Ferrari, head of research at siderweb, the new restrictions could ease pressure from imports and support steel prices in the EU, producers’ margins and capacity utilization—if demand remains high enough. However, any potential benefits will have to be weighed against high energy prices, rising emissions costs and the substantial investment required to switch to low-carbon technologies.
Higher steel prices are particularly sensitive for distributors, steel service centers and businesses that use metal as a raw material. They will find it harder to compete with companies outside the EU if imported finished products are not subject to comparable requirements.
Paolo Sangoi, CEO of Sangoi Group and president of Assofermet Acciai, said distributors were concerned that they might have to pass additional costs on to customers. He questioned whether end users would be able to absorb the full price increase and called on the EU to support industrial consumption and production. He warned that higher costs could accelerate the relocation of production outside Europe.
Another question is whether the market can sustain demand for low-emissions steel. Investment in its production will make economic sense if buyers are willing to pay a premium for products with a smaller carbon footprint. At the same time, as Isabella Manfredi, sustainability director at Feralpi Group and president of Sustainability Makers, emphasized, decarbonization is continuing even after some EU requirements have been revised. Demand for environmental performance information and supply-chain transparency is growing, making it increasingly important for producers to provide reliable, verifiable emissions data.
Conference participants also described ferrous scrap collection as strategically important. This is especially necessary as electric arc furnaces play an increasingly prominent role in decarbonizing the steel industry. RICREA President Domenico Rinaldini said Italy imports around 7–8 million tonnes of scrap each year to meet the needs of its domestic steel industry. He said maintaining domestic collection volumes and developing recycling are essential to ensure reliable raw material supplies and meet climate targets.
Rinaldini also referred to the EU Packaging and Packaging Waste Regulation (PPWR), which is expected to change existing packaging management and extended producer responsibility systems.
The discussion in Rimini showed that the transition of Europe’s steel industry depends not only on climate rules and protection of the domestic market. It also requires affordable energy, investment in new technologies and sustained industrial demand. The main challenge is to cut emissions without undermining the competitiveness of steel producers, distributors and businesses that use steel.