Posted on 24 Nov 2025
European coil and semi-finished steel importers are waiting for clarification of the CBAM parameters outlined in the leaked European Commission document circulating the market last week, they tell Kallanish.
As the calculation criteria stand, sources say it remains difficult to determine the real cost of importing, particularly because the figures currently available are default values.
If importers can demonstrate actual values, those should apply instead, one source notes.
Another market participant estimates that CBAM costs for material from “virtuous” or relatively low-emission producers could range between €30-60/tonne, depending on the source. Large buyers are now working closely with their third-country suppliers, effectively “training” them on how to report every element of their production process. Asian mills must provide responsible, and above all verifiable, data for all production phases, starting with energy use and energy type.
CBAM rules require at least one physical plant inspection per year by an accredited expert to verify the accuracy of the reported information. Industry discussions also indicate that virtual tours may be added on top of physical audits.
On the risk of false declarations, a coil buyer says it is in suppliers’ interest to report accurate information, as many elements can be easily checked. Several Asian suppliers intend to remain active in Europe, and misreporting would quickly damage their reputation and market share.
Some countries are expected to face substantial CBAM charges, particularly India, where coal-based primary steelmaking is widespread. Using default values for some origins, including India, will result in punishing costs, meaning it is preferable suppliers submit accurate data.
Another coil buyer notes that CBAM effectively acts as an additional duty, adding further complexity to imports. However, the strongest barrier to overseas supply remains the EU’s quota system. A trading company says: “We are operating in fog”.
CBAM parameters and calculation values remain unclear, and the list of accredited inspectors who will verify suppliers’ emissions has yet to be released. Buyers report confusion and a reluctance to commit to new bookings. The European market is quiet, and with sufficient steel availability, there is little urgency to purchase.
A widespread concern is that quotas under the new safeguard measure, whose implementation date is still to be determined, could be exhausted within hours, with Asian suppliers prioritising large buyers who have been long-standing customers.
The average price of hot rolled coil in Europe is at €600-630/tonne base delivered, sources suggest.
The European Commission’s long-awaited draft CBAM benchmark values were provided in two columns, A for use when applying the actual emissions intensity data provided and verified by a non-EU steelmaker, and B for use with default values when actual data is not available (see Kallanish 19 November).
Source:Kallanish
