As the EU’s Carbon Border Adjustment Mechanism (CBAM) nears its full implementation in January 2026, steel importers are facing serious financial uncertainty. The European Association of Non-Integrated Metal Importers & Distributors (EURANIMI) has warned that EU importers face major cost risks, up to €100/mt carbon - a critical margin in today’s highly competitive global market, due to the lack of clarity on benchmark values for stainless steel under the CBAM.
According to the statement, European stainless steel producers mainly use electric arc furnace (EAF) technology, which relies on recycled scrap and emits significantly less carbon. The benchmark in this case could be set as low as 0.3 t carbon/mt, translating into a CBAM cost of €298.14/mt. In contrast, 40 percent of stainless steel production outside the EU relies on more carbon-intensive methods. If a more globally representative benchmark of 1.5 mt carbon/mt is used instead, the same product would incur a CBAM cost of €198.69/mt.
The association warns that, while EAFs are indeed the cleanest method, setting the benchmark exclusively on EAF production is misleading. EURANIMI said, “Using EAF as the only basis for the benchmark may look climate-friendly, but it ignores market realities. Scrap availability is limited, and the world simply cannot meet ever-growing demand through recycled material alone.”
The association has called upon the European Commission to urgently clarify its position and engage with stakeholders to ensure the benchmark reflects both climate goals and industrial realities.