CBAM circumvention threat concerns European distributors

European steel service centres are concerned that some large, first-tier customers are turning to imports from outside the EU of the final, steel-containing product as these do not come under the Carbon Border Adjustment Mechanism (CBAM).

Suppliers from Asia are meanwhile looking for workaround solutions and are threatening the European metalforming industry and service centres. So was the conclusion of last week’s working group meeting hosted by European distributors’ association EUROMETAL.

“Scared by the impact of CBAM, some large customers (1st tiers) are looking for external alternatives outside European borders and opting to import ready-to-use steel products, in order to circumvent the regulation,” EUROMETAL says in its meeting summary.

“This trend deeply worries service centres, especially considering the current period of moderate activity. Already facing significant investments in decarbonisation and cost optimisation, CBAM throws another wrench into an already challenging situation,” it adds.

“The future of European steel processing hinges on the industry’s ability to adapt to the demands of CBAM while remaining competitive. Collaboration and innovation will likely be key to weathering this storm,” the association concludes.

Adam Smith Poland