Speaking of Steel Ep.2: Will complex EU CBAM import rules raise steel prices?

MEPS International explores the rollout of the EU’s carbon border adjustment mechanism (CBAM) so far, and the added complexity to come, in its latest Speaking of Steel podcast.

Market analysts from the steel price and insight provider discuss how stringent new requirements for accurate emissions data and the introduction of carbon costs will add to the burden on importers and suppliers – potentially realigning Europe’s supply chains. 

Joining MEPS managing editor Tom Sharpe in the studio for this episode from the steel market podcast series are MEPS’s head of price analysis and forecasts Kaye Ayub and steel market analyst Jonathan Carruthers-Green.

Speaking on the podcast, Ayub said: “We have heard from importers and distributors who have taken on staff just to handle the administrative side of CBAM.

“Although there are no CBAM specific costs for importing, at the moment, there are the staff costs associated with it and also the consultancy costs that might arise if they need assistance, so there is already an additional cost attached to CBAM for many companies.”

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Each episode of Speaking of Steel will feature insight and analysis on a topic influencing steel prices, supply, demand and forecasts for key markets covered by MEPS’s global research.

Listen to, or view, Episode Two to benefit from:

• A detailed look at the timeline for CBAM’s rollout and its milestone dates
• Discussion of the cost and administrative implications of the emissions-based import regulations
• Explanations of what an end to “default emissions” reporting and the launch of a new “carbon cost” system mean for the market
• The outlook for steel prices in light of CBAM’s influence on the European steel industry