The quiet beginning of the CBAM era for the EU steel industry
The era of emissions-based import duties began in a restrained manner, as steel prices in the EU rose slightly in the first weeks of 2026.
Some European Parliament respondents noted that it would be difficult for importers and European factories to cover their new emissions costs, as the European average price set by MEPS for all types of rolled products assessed for this report increased by 13 euros per tonne in January. Prices for long products increased by 9 euros per ton.
Most importers from the EU are currently not placing new orders. They continue to ponder the long-awaited communication from the European Commission on country-specific emission standards that can be used to estimate the cost of CBAM taxes in the absence of verified enterprise data. Many respondents from among the members of the European Parliament were shocked by the December 17th publication. Some called the high default emission values set for some key steelmaking countries "punitive."
Importers' shock at "punitive" default emission standards
The analysis of CBAM taxes on the main steel goods imported into the EU, calculated using the default emission standards for a particular country, conducted by MEPs, showed that the cost of a hot-rolled roll from Turkey is 115 euros per ton, and from Turkey - 125 euros per ton from Ukraine and 295 euros per ton from India. Similar differences exist in CBAM taxes on rebar imports. Turkish-made fittings are subject to a CBAM tax of 105 euros per ton, while Egyptian and Norwegian materials are subject to a tax of 305 euros per ton.
These calculations were made using the EU carbon cost of 90 euros per tonne as determined by the Emissions Trading System (ETS). The average quarterly ETS price will be used to calculate CBAM taxes in 2026. However, ETS prices are rising. This will affect both CBAM taxes and the rising carbon costs of domestic steel producers.
- This article first appeared in the January issue of the MEPS International European Steel Review. The monthly review contains steel prices, indexes, comments, and forecasts for 12 months, covering Belgium, France, Germany, Italy, Spain, and the United Kingdom. Contact the MEPs for detailed information on how to subscribe.
When the leaked European Commission documents prompted some market participants to calculate CBAM taxes in mid-November, the ETS price was 84 euros per ton of carbon emissions. At the time of publication of this report, the cost has increased to 92 euros per ton, which is 57% more than in April 2025. Members of the European Parliament