The European Commission has started monitoring imports and exports of scrap (CN 7204, 7404, 7602) to address a growing raw material shortage, which risks shutting down blast furnace and electric arc furnace capacities. CBAM expert David Cruz notes this step helps close major loopholes in the Carbon Border Adjustment Mechanism (CBAM), as such scrap is not currently covered by CBAM.

The move could impact CBAM’s future expansion, with plans to include goods made from these materials by year-end. It also targets circumvention, tracking EU-origin scrap exported, processed abroad, and re-imported without carbon pricing. Potential requirements like "melting and casting" and origin declarations, especially for re-imported goods, may follow.