Brazilian steel slab deliveries to the European Union reached approximately 1.02 million tonnes in January–June 2026, compared with around 265,000 tonnes in the same period of 2025, according to trade data reported by Fastmarkets. The increase comes as European buyers continue sourcing semi-finished steel internationally under the EU’s Carbon Border Adjustment Mechanism (CBAM).
The 283.7% year-on-year increase was documented using Brazil’s Comex Stat trade database in a July market assessment by Fastmarkets. The comparison was partly affected by unusually low Brazilian shipments during the opening months of 2025.
Import economics extend beyond carbon costs
CBAM is designed to align the carbon costs associated with imported goods with those faced by European production. It does not prohibit imports with higher emissions or require EU buyers to prioritise domestic suppliers.
Purchasing decisions therefore depend on the combined cost of delivered steel, transport, applicable carbon liabilities and the availability of verified emissions data. Brazilian slab producers can remain competitive where production costs, emissions performance and logistics offset CBAM-related expenses.
European steel rerollers may also find imported slabs commercially attractive when domestic semi-finished steel production is expensive or available supplies are insufficient.
EU ETS allowance changes increase the importance of emissions data
The longer-term economics of Brazilian steel shipments will depend partly on the progressive phase-out of free allowances under the EU Emissions Trading System (EU ETS). As this process advances, the carbon component of import costs is expected to become more significant.
Brazilian steelmakers will consequently need reliable, installation-level emissions accounting to demonstrate the emissions performance of their production relative to competing suppliers.
Aluminium exporters face similar documentation requirements
Brazil’s aluminium industry also faces requirements to establish emissions associated with relevant production processes and covered products. Hydropower and other lower-carbon electricity sources could provide a commercial advantage where the applicable CBAM methodology recognises the resulting emissions performance and producers can supply acceptable supporting evidence.
For investors and banks financing Brazilian steel and aluminium projects, assessments of future EU sales need to account for emissions performance, verification expenses and the ability to secure long-term supply contracts with European buyers.
