2026
24
Apr
Global Trade & Insights
How CBAM Will Impact Steel Prices in the EU: What Buyers Must Know in 2026
Table of contents
1. Introduction: A New Cost Reality for Steel Procurement
“From 1 January 2026, EU importers bringing more than 50 tonnes of CBAM-covered goods into the EU per calendar year are subject to CBAM obligations.” The EU's Carbon Border Adjustment Mechanism (CBAM), the world’s first carbon border adjustment mechanism, fundamentally transforming the economic landscape of the global steel trade. For EU buyers, purchasing managers, and Asian steel suppliers, the question every ton is no longer theoretical: how much will CBAM add to the price of steel, and what should you do about it?
Iron and steel accounted for 58% of the total import volume of CBAM-covered products in 2024, making this sector the single most affected by the new carbon border regulations. At Yieh Corp., we have analyzed the implications for buyers sourcing steel from the Asia-Pacific region. This guide provides the data, context, and strategies you need.
| 58% of CBAM-covered import volume is iron & steel |
€75.36 approx. CBAM Certificate price (2026 Q1) |
2027 first certificate surrender deadline (Sep 30) |
2. What Is CBAM and Why 2026 Is the Critical Year
The Carbon Border Adjustment Mechanism (CBAM) is a policy tool of the European Union to prevent "carbon leakage, which refers to the risk that European industries may lose competitiveness because non-EU producers are not subject to carbon pricing. CBAM ensures a level playing field by applying the same carbon price to imported goods as EU producers pay under the EU Emissions Trading System (EU ETS).
CBAM Compliance Roadmap: From Reporting to Settlement The EU's Carbon Border Adjustment Mechanism (CBAM) moves from a reporting-only transitional period to a full financial compliance phase. This roadmap outlines the critical dates and obligations importers must meet to maintain market access.
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*Certificate price basis: The CBAM certificate price will be calculated quarterly throughout 2026. Starting January 1, 2027, the price will be determined on a weekly basis.
| ● KEY EXEMPTION Importers bringing in 50 tonnes or less of CBAM-covered goods per calendar year are exempt from CBAM obligations. If the 50-tonne threshold is exceeded, CBAM obligations apply to all CBAM goods imported during that calendar year, including goods imported before the threshold was exceeded. |
3. How CBAM Calculates the Carbon Cost
Understanding how CBAM costs are calculated is essential for every steel buyer. The mechanism does not apply a flat tariff — it charges based on the verified carbon content of each specific product, adjusted for any carbon price already paid in the country of production.
| CBAM Fee = The cost depends on the embedded emissions of the goods, the applicable EU ETS free allocation adjustment, the CBAM certificate price, and any carbon price effectively paid in the country of production/origin. |
● YIEH CORP. ADVANTAGE Understanding how CBAM costs are calculated is essential for every steel buyer. The mechanism does not apply a flat tariff — it charges based on the verified carbon content of each specific product, adjusted for any carbon price already paid in the country of production.
Yieh Corp.’s stainless steel products are primarily manufactured using the electric arc furnace (EAF) process, which utilizes a large amount of recycled scrap steel. As a result, their carbon intensity is significantly lower than the standard benchmark. We can provide the factory's carbon emission data to support your verified actual emissions report.
● YIEH CORP. ADVANTAGE
Yieh Corp.’s stainless steel products are primarily manufactured using the electric arc furnace (EAF) process, which utilizes a large amount of recycled scrap steel. As a result, their carbon intensity is significantly lower than the standard benchmark. We can provide the factory's carbon emission data to support your verified actual emissions report.
4. How CBAM Disrupts Traditional Price Comparisons
For decades, EU steel buyers have evaluated import offers primarily on CIF (Cost, Insurance, Freight) price. CBAM fundamentally breaks this model. An offer that appears €50/tonnes cheaper may become €150/tonnes more expensive once CBAM certificate costs, administrative burden, and financing costs are included.
The New “True Total Landed Cost” Framework
● CIF Price: Mill price + freight + insurance (unchanged)
● CBAM Certificate Cost = [Embedded Emissions − (CBAM Benchmark × CBAM Factor)] × CBAM Certificate Price − Eligible Carbon Price Already Paid
● Compliance Administration: Cost of obtaining Authorized Declarant status, third-party verification, data management
● Supply Chain Risk Premium: Risk of non-compliant supplier data triggering penalties or default-value assessment
5. What EU Steel Buyers Should Do Right Now
CBAM is no longer a future risk but an immediate cost. Here is a practical action plan for steel procurement teams sourcing from outside the EU:
1. Conduct carbon intensity audits of your current suppliers by obtaining CO2 emissions data per tonnes of steel from all non-EU suppliers.
2. Prioritize suppliers with third-party verified emissions data, as this will significantly reduce your CBAM costs.
3. Apply for CBAM Authorized Declarant status immediately if your annual import volume exceeds 50 tonnes. The application process is time-consuming and should not be postponed until late 2026.
4. Rebuild your landed-cost model to include CIF price, CBAM certificate cost, verification cost, administration cost, and supply-chain risk. 5. Develop a certificate procurement plan. Certificates for goods imported in 2026 will be purchased starting in February 2027. Include funding requirements and potential risks in your budget.
6. Closely monitor CBAM policies, as they will affect the cost structures of customers producing steel-containing products.
| YIEH CORP. CAN HELP As your Asia-Pacific steel supply partner, Yieh Corp. offers: (1) Product-level carbon intensity documentation from our mill partners; (2) Procurement consulting services to optimize your CBAM-adjusted costs. Contact our team to start the conversation |
6. Conclusion: Carbon-Adjusted Procurement Is Now the Standard
CBAM is not a transitional policy but a permanent new EU regulation governing the trade of high-carbon-emission goods. For steel buyers, the era of evaluating suppliers solely based on CIF prices has ended. Carbon intensity has now become a critical financial factor in every import decision.
Buyers that take proactive steps by auditing suppliers, securing verified emissions data, applying for Authorized Declarant status, and rebuilding cost models. Compared to those who adopt a wait-and-see approach, they will complete the transformation at a lower cost and with greater supply chain stability.
At Yieh Corp., we are committed to being the most transparent and CBAM-ready steel supply partner in Asia-Pacific. Our EAF-intensive stainless steel product range, carbon intensity documentation capabilities, and deep understanding of EU regulatory requirements position us uniquely to support your green, compliant procurement strategy in 2026 and beyond.
7. Frequently Asked Questions About CBAM and Steel Prices
These answers are structured for buyers, procurement managers, and trade compliance teams.
| Q1. When do steel importers have to start paying CBAM? |
| The CBAM definitive period will start on 1 January 2026. The actual purchase and surrender of CBAM certificates begins in 2027: certificates can be purchased from 1 February 2027, and the first annual CBAM declaration (covering all 2026 imports) must be submitted by 30 September 2027. |
| Q2. Does CBAM apply to metallic coated steel and stainless steel? |
| Yes. CBAM broadly covers iron and steel products, including hot-rolled and cold-rolled flat products, metallic coated steel, organic coated steel, stainless steel sheets and coils, bars, rods, and wire rods. Each product type has its own CN code classification and corresponding emissions benchmark. |
| Q3. What is an Authorized CBAM Declarant and do I need to become one? |
| An Authorized CBAM Declarant is an EU importer (or their indirect customs representative) approved by the national authority to import CBAM-covered goods and submit annual CBAM declarations. You must apply for this status if you import more than 50 tonnes of CBAM-covered goods (cumulative net mass) per year. Without this status, you will not be legally permitted to import covered goods starting in 2026. |
