European steel prices are beginning to rise again as the EU’s Carbon Border Adjustment Mechanism (CBAM) moves from its transition phase into full implementation, according to Emil Ceglarski, procurement director at Polish steel distributor Konstal.
Ceglarski said the mechanism is already increasing the cost of imported steel and pushing up domestic prices. CBAM requires importers to pay for the carbon emissions embedded in steel produced outside the EU, effectively aligning import costs with the carbon costs faced by European producers.
He noted that, while the CBAM transition period from October 2023 to the end of 2025 had no direct impact on prices, the situation has now changed. As the system becomes operational, the added carbon-related charges are starting to be reflected in market quotations. After a prolonged period of price declines between May 2022 and December 2025, steel prices have now rebounded, partly due to the protective effect of CBAM on the EU market.
Import strategy shifts and further increases expected
Konstal has already adjusted its procurement strategy. According to Ceglarski, the company has significantly reduced imports from non-EU suppliers because of uncertainty surrounding CBAM rules and last-minute regulatory details released at the end of 2025. He emphasized that higher carbon-related import costs are translating directly into higher material prices in the domestic market.
The impact is already visible across key product segments. Ceglarski said prices for ribbed bars, flat products, and cold-formed sections have risen by around 10-12 percent from their recent lows. He warned that further increases are likely, particularly in the second half of the year, when new safeguard measures are expected to tighten quotas and raise tariffs from 25 percent to 50 percent on certain imports.
