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| CBAM Regulation Metals Impact |
Financial Implications for Metals Supply Chains
The CBAM Regulation Metals Impact introduces a carbon cost on EU imports, directly influencing margins, competitiveness, and procurement strategies. From January 2026, importers must buy CBAM certificates linked to embedded emissions in steel, aluminium, and other goods. Meanwhile, carbon intensity now determines market access and profitability. As a result, supply chains are reassessing assets and sourcing strategies to minimize exposure.
Sectoral Exposure and Strategic Risks
Steel faces the highest CBAM Regulation Metals Impact, accounting for 75% of potential liabilities. High-intensity steel imports could incur €40–€60 per tonne additional costs at an EUA price of €90. Aluminium also faces rising liabilities, potentially reaching €4.7 billion by 2030 if indirect emissions are included. Furthermore, over 50% of CBAM costs concentrate in India, Türkiye, China, Ukraine, and Russia, creating new geopolitical and trade-related risks.
Navigating CBAM Compliance and Opportunity
Companies must integrate CBAM into financial and procurement planning. The CBAM Regulation Metals Impact report from Fastmarkets quantifies exposure and offers actionable insights. Consequently, businesses can optimize carbon efficiency, reduce costs, and maintain competitive advantage in European markets. In contrast, ignoring CBAM will increase costs and limit market access.
ScrapInsight Commentary
CBAM fundamentally changes steel and aluminium trade economics, making carbon efficiency a core competitiveness factor. The regulation incentivizes cleaner production and may shift global supply chains. Companies must integrate CBAM costs to sustain profitability and reduce regulatory risks.
