CBAM comes into effect, direct impact on prices
.png "CBAM comes into effect, direct impact on prices")
Market update January 2026
Since 2024 we have been addressing the possible consequences of the European CBAM regulation in our market updates. As of 1 January 2026 a next phase has started. We would like to provide an update on the current status and the consequences for the market.
What is CBAM
CBAM stands for Carbon Border Adjustment Mechanism. This European regulation is intended to price CO2 emissions more fairly. For products that are produced outside the European Union and that cause CO2 emissions, a CO2 levy is applied upon import. With this measure the EU aims to prevent production from shifting to countries with less stringent environmental regulations. This is in line with our vision on corporate social responsibility.
Current status
CBAM is being introduced in phases and is now active. In the first phase the focus is on steel and steel related products, including fasteners.
In December 2025 the financial impact could not yet be determined. The EU has now published standard CO2 emission values per country and per HS code. These standard values form the basis for calculating the levy. If a manufacturer can demonstrate lower emission values and these are validated by an independent certification body, the actual emissions may be used. However, the exact procedures and conditions for this are not yet known. As a result, uncertainty remains about the final level of the levy. What is clear is that CBAM is financially applicable to all our imports as of 1 January 2026.
Consequences for the market
The introduction of CBAM has a significant impact on product cost prices and therefore on market prices. The level of the levy means that these costs cannot be fully absorbed within the supply chain. Now that the first deliveries of 2026 have been received, this effect is becoming visible in market pricing.
We closely monitor developments related to CBAM and will continue to share new insights as soon as more clarity is provided by the European Union. Based on the current information, further market corrections cannot be ruled out.