Correction: EU imports decline in the first quarter as CBAM taxes limit viability
The application of CBAM taxes significantly reduced the volume of stainless steel imports into the EU during the first two months of 2026, customs data shows.
The volume of imported cold-rolled coils cleared for customs clearance by February 23, 2026, decreased by about 44% compared to the same period in 2025. The volume of imports processed during the first weeks of the new quarterly quota period is also about 48% lower than the amount imported into the EU after a similar number of days in the fourth quarter of last year.
- Due to the changes in how steel imports to the EU are reported, an earlier version of this article contained inaccurate data on February quotas.
Importers of cold-rolled steel in the EU began to look for alternative sources after the European Commission published its default emission values for a specific country on December 17 last year.
Some have described the default figures used to calculate CBAM taxes in the absence of confirmed emissions from enterprises as "punitive" for some countries, especially Taiwan.
When calculated using the EU carbon price of 70 euros per ton, cold-rolled coils from Taiwan will be subject to a CBAM tax of about 590 euros per ton of steel.
This is comparable to a tax of 215 euros per ton of cold-rolled coils from South Africa and 165 euros per ton of material of American origin.
Taiwan was the largest source of imports of cold-rolled coils to the EU in 2025. Over the 12-month period, the volume amounted to 226,267 tons, which accounted for more than a quarter of total imports.
Volatile ETS Trading Increases Price Uncertainty
The cost of CBAM taxes, which must be submitted in the form of CBAM certificates in September 2027, will be determined by the European carbon cost derived from the EU Emissions Trading Scheme (ETS).
The quarterly average will be used to determine the CBAM taxes applicable in 2026. However, this year the EU ETS has been trading in a wide range of prices.
In mid-January, prices peaked at over 92 euros per tonne, but have since fallen to below 70 euros in mid-February.
The decrease followed calls from EU leaders for reform of the ETS system and a potential postponement of the phase-out of free ETS quotas for high-emission industries such as the steel industry.
A February MEPS study showed that stainless steel manufacturers who are not used to exporting large volumes of material to the EU are increasingly being approached by potential customers.
Despite the fact that on February 12, US President Trump canceled environmental protection measures introduced by the Environmental Protection Agency.