The European Union’s Carbon Border Adjustment Mechanism (CBAM) currently covers ferrochrome, ferromanganese and ferronickel alloys, while several other alloys remain outside its scope. Producers in Türkiye, Kazakhstan-based operations, South Africa and the Western Balkans therefore face different carbon-border requirements depending on their products. For suppliers, installation-level emissions data and verification are becoming increasingly important to maintain access to European markets, alongside ore availability, electricity prices and logistics.
Electricity sourcing and furnace efficiency will affect producers’ competitiveness. South African suppliers and some producers in the Western Balkans face exposure to carbon-intensive power, while Kazakhstan combines significant mineral resources with a fossil-fuel-dependent electricity system. Türkiye’s established industrial base and trade links with the EU offer advantages, although emissions performance varies between facilities.
Regional suppliers benefit from shorter transport routes, established customers and lower delivery costs. Those advantages could be weakened if default emissions values raise CBAM costs. Verified plant-level emissions data may consequently become as important as traditional product-quality certificates.
Investment options for reducing emissions
Renewable power purchase agreements, captive solar and wind generation, energy storage, furnace upgrades and waste-heat recovery are potential ways to lower emissions. Financing these improvements can help producers protect EU market access and strengthen their competitive position.
Regional ferroalloy suppliers remain important to Europe’s supply diversification. CBAM is unlikely to remove that role, but it will increasingly favour producers that can demonstrate competitive carbon performance rather than relying solely on inexpensive power and mineral resources.
