Steel prices in Europe are projected to increase in the lead-up to the Carbon Border Adjustment Mechanism (CBAM), which takes effect in January 2026. Industry experts suggest that buyers are beginning to place orders early to avoid potential cost surges once the new carbon-related tariffs are enforced.

The uncertainty surrounding CBAM’s pricing structure and quota limitations is prompting a wave of restocking, particularly for imports. Analysts estimate that CBAM could add around €50–60 per tonne to steel prices, with further support expected from the broader push toward green steel production.

While current demand remains subdued, the anticipation of higher costs and tighter regulations is likely to drive market activity in the coming months.