Tata Steel expects steel prices in Europe to rise structurally in the coming years, driven by carbon emission-related pricing and quota-based tariffs, the company’s CFO Koushik Chatterjee said. He noted that prices in the European Union are likely to settle at a much higher level.

The EU implemented the Carbon Border Adjustment Mechanism (CBAM) earlier this year, while the Tariff Rate Quota is set to take effect later. Both measures aim to shield Europe’s steel sector from cheaper imports.

Tata Steel, operating in the Netherlands and the UK, reported improved profitability in the Netherlands but continued losses in the UK during the December quarter. CEO TV Narendran said stability in volumes and cost reductions, along with CBAM, are supporting markets. He added that UK policy announcements are expected to support the industry soon.