The EU's Carbon Border Adjustment Mechanism (CBAM) will be officially implemented in January 2026, and the CBAM committee has released default emission values for steel imports. Despite the clarity provided, EU buyers are largely delaying purchases, according to steel traders.

Contrary to expectations, purchasing activity has not accelerated. Buyers are hesitant due to the uncertainty surrounding the final CBAM cost. They pointed out that the complexity of emissions calculations and the possibility of the European Commission auditing steel mill data could lead to significant differences in the final levy.

This hesitancy is pushing buyers to observe industry practices before committing to new purchases. Besides, as the CBAM framework solidifies, a corresponding rise in carbon credit prices is expected, adding another layer of cost concern for the market.