[SMM Iron & Steel] EU Carbon Border Adjustment Mechanism (CBAM) Enters Definitive Regime

Published: Jan 5, 2026 10:06

Save

On January 1, 2026, the European Union's Carbon Border Adjustment Mechanism (CBAM) officially transitioned from its reporting-only phase to its definitive regime. Importers of iron, steel, and specific downstream products are now required to purchase CBAM certificates to cover the carbon emissions embedded in their goods, effectively linking import costs to the EU Emissions Trading System (ETS) price. This structural shift is expected to impose a financial burden on high-emission producers, particularly those utilizing traditional blast furnace routes in India and Southeast Asia, while incentivizing the global trade of green steel and Direct Reduced Iron (DRI).

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

4 hours ago

[SMM Steel] 7.24 SMM Global Steel Daily Report

[Brazil] Major-customer bankruptcy triggers spot liquidation; Brazilian HDG prices under pressure This week domestic hot-dip galvanized (HDG) steel prices in Brazil came under downward pressure. The decline was primarily driven by a key client of a major local mill filing for bankruptcy liquidation, creating receivables risks that prompted the steelmaker to liquidate inventory at discounted spot prices to accelerate cash recovery. However, backed by robust automotive demand, quotes from other mainstream mills held firm. Hot-rolled coil ex-works prices stabilized at 750-760USD/tonne EXW, as high interest rates and tight credit conditions continued to suppress downstream purchasing sentiment. In the slab market, mills prioritized internal consumption for September shipments, keeping export offers steady at 580-585 USD/tonne FOB.

4 hours ago

Macro Expectations Heat Up but Demand Under Pressure; Ferrous Metals Consolidation Pattern Hard to Change [SMM Steel Industry Chain Weekly]

Ferrous metals showed slight divergence this week, with coking coal outperforming while iron ore, coke, and coil and rebar were generally weaker, and iron ore led the decline. During the week, news of the U.S.-Iran conflict fluctuated, but the market...

4 hours ago

【SMM Analysis】Sheet and plate prices continue to consolidate near the bottom

4 hours ago