[SMM Steel] Asian mills accelerate CBAM compliance as EU carbon costs reshape steel trade

Published: May 13, 2026 17:43

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[SMM Steel] Asian steelmakers are stepping up CBAM compliance efforts as the EU published its first CBAM certificate price at €75.36/mtCO2e for Q1 2026 and tightened steel safeguard quotas. Mills are increasing emissions reporting, third-party verification, and carbon cost optimization to remain competitive in the EU market. India’s HRC quota under EU safeguard category 1A was exhausted within days after April 1. JSW Steel said its HRC emissions intensity is 1.8-2 tCO2/mt, well below India’s default CBAM value of 4.7 tCO2/mt. Market participants expect steel pricing to increasingly diverge based on verified emissions intensity and carbon compliance.

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