European steel buyers are navigating a more fragmented import market as tighter quota conditions coincide with CBAM liabilities, affecting sourcing decisions and the way procurement costs are assessed, according to a market paper from Argus Media.
Published on 24 September, the analysis examines changes in quota availability, country allocations and exposure to carbon costs. It describes an EU import market increasingly shaped by several overlapping trade restrictions.
Country allocations tighten for key steel products
Turkey and India face lower allocations in parts of the EU quota system, while country-specific caps affect the sources available to European buyers.
Among the products facing tighter import availability are wire rod and rebar, Argus said. The restrictions are changing the conditions under which steel suppliers can access the European market.
The analysis also points to trade diversion. Indian steel exports have been redirected towards Latin America, Africa and the Middle East as access to the European market becomes more restrictive.
CBAM adds carbon costs to procurement calculations
The definitive CBAM regime began in January 2026, while the Argus analysis examines additional changes to EU steel trade rules introduced from July.
Quota restrictions and CBAM operate through separate mechanisms. Import availability under the quota system does not determine the carbon adjustment applicable to a shipment, and the two measures cannot be treated as interchangeable.
For steel buyers, CBAM introduces an additional calculation alongside conventional procurement costs. The assessment needs to account for carbon-related liabilities, steel prices, freight costs and applicable trade duties rather than treating a mill’s quoted price as the full delivered cost.
Supplier selection increasingly combines price and emissions
The interaction of quota availability and CBAM creates both physical supply and financial cost risks for purchasing teams.
A supplier can offer a competitive steel price while having limited access to the relevant EU quota. Another producer may provide more dependable market access but carry a different emissions profile and resulting CBAM cost.
The combination of trade restrictions and carbon-cost exposure therefore adds separate variables to European steel sourcing decisions.
