The European steel industry has warned that Europe still falls short of a level playing field after the European Parliament backed an extension of the Carbon Border Adjustment Mechanism to downstream steel and aluminum products on Sept. 15.
The Parliament approved the expansion of CBAM’s scope to finished goods such as fasteners, wire, springs and household articles by a 464-50 vote, with 159 abstentions. The move aims to address carbon leakage in downstream manufacturing, where imported steel‑containing goods increasingly enter the EU market without facing the carbon costs borne by European producers.
“Today’s vote is a step in the right direction, but it does not yet deliver a level playing field for European industry. The proposed scope remains incomplete, implementation is too slow, and there is still no solution for EU exporters carrying carbon costs when competing globally,” said Alexander M. Julius, president of Eurometal. “Moreover, CBAM alone cannot offset the broader cost disadvantage faced by European manufacturers due to higher steel prices and regulatory burdens. Europe must protect the entire value chain if it wants to prevent carbon leakage and deindustrialization,” he added.
The federation has called for CBAM coverage to be extended to all relevant steel and aluminum-intensive products with an acceleration in implementation timelines, as well as greater support to EU exporters and making sure the EU protects industrial activity rather than encouraging its relocation in its climate policies.
German steel industry association Wirtschaftsvereinigung Stahl also called for increased protection of EU exporters, who still bear European carbon costs, and said it was now crucial for the Parliament to quickly reach an agreement with the European Commission and Council to implement the regulation.
Ahead of the vote, the European Steel Association (Eurofer) supported the motion but called for stronger rules to prevent circumvention, noting the scale of investment required for steelmakers to decarbonize. “Europe’s steelmakers are investing billions to produce cleaner steel, but they cannot make that transition without a level playing field. MEPs have the opportunity to strengthen CBAM so that investing in low‑carbon steel production in Europe makes economic sense,” said Axel Eggert, director general of Eurofer. “Europe should be creating the conditions to produce more clean steel here, not incentives to move production elsewhere.”
European steel prices have risen in 2026 following CBAM’s implementation and the revised steel safeguard mechanism, with domestic mills holding firmer positions in negotiations as importers seek to mitigate their regulatory risks.
Platts, part of S&P Global Energy, assessed domestic hot-rolled coil in Northern Europe at €730/mt ex-works Ruhr, and in Southern Europe at €725/mt ex-works Italy, both up €110/mt since the start of the year.
Platts assessed imported HRC in Northern Europe at €585/mt CIF Antwerp, and in Southern Europe at €580/mt CIF S. Europe, both up €85/mt across the same period.
Author: Annalisa Villa
