The EU’s cross-border carbon adjustment mechanism (CBAM) is beginning to affect import costs, raw material availability, and purchasing decisions across the supply chain, according to Emil Ceglarski, purchasing director at Polish metalworking company Konstal sp. z o.o.

Ceglarski noted that many key details of the European carbon tax were announced at the last minute at the end of last year, requiring time for companies to adjust relationships with suppliers. He said the mechanism is already pushing domestic prices up, with increases of 10% to 12% for ribbed bars, flat rolled products, and cold-formed profiles, which are imported in large quantities into the EU.

Price pressure is expected to intensify later this year due to new EU protective measures, including a reduction in quotas by almost half and higher customs duties on volumes exceeding quotas, rising from 25% to 50%. While CBAM influences cost levels, Ceglarski said the steel market continues to follow its historical cycles.