The steel industry is going through one of the most decisive moments of recent decades. The pressure to reduce emissions and move towards a more sustainable economy is no longer an option for a handful of environmentally conscious organisations, but a global requirement.
Steel, a material that is essential in practically every productive sector, is at the centre of this debate, especially in Europe, where the commitment to decarbonisation is profoundly shaping the direction of the market.
In this context comes the Carbon Border Adjustment Mechanism (CBAM), probably the regulation that will have the greatest impact in the coming years on the European metalworking industry. And, as happens with every major transformation, companies have to adapt quickly, with judgement and strategic vision.
At Ferros Texar we have spent years working alongside companies of all sizes in a market that never stops changing. That’s why today we want to clearly explain what CBAM is, how it will affect the metal sector in Spain and, above all, how we’re handling it to keep offering our customers security, stability and a reliable service.
The importance of steel and the decarbonisation challenge
Steel is one of the most widely used materials in the world: construction, automotive, machinery, energy, infrastructure, light industry, etc. You could say it’s present in almost everything. But its production process is highly emissions-intensive, especially when based on traditional routes such as the blast furnace (BF-BOF).
As the European Union tightens its CO₂ reduction policies, a problem emerges that worries governments, manufacturers and distributors: carbon leakage. What does it mean? We’ll explain it very clearly:
- European companies have to comply with strict environmental regulations and take on high costs for emissions.
- Companies outside the EU are not always subject to the same requirements.
- If importing steel from third countries is cheaper for environmental reasons, European companies lose competitiveness.
- And, moreover, global emissions aren’t reduced, they simply move elsewhere.
To prevent this imbalance, CBAM was created, a tool designed to level the playing field between European and non-EU producers.
What CBAM is and how it works
The CBAM is a mechanism developed by the European Union to equalise the cost of carbon between products manufactured within the EU (where emissions are paid for through the EU Emissions Trading System (EU ETS)) and products imported from countries with less demanding regulations.
Its main objective is to ensure that both steel and other imported materials pay a cost linked to their carbon footprint, similar to what European manufacturers already pay.
In this way, it aims to prevent cheaper products entering the market for purely environmental reasons, encourages decarbonised production in third countries, and protects the competitiveness of European industry.
Which sectors are affected by CBAM
CBAM applies to several emissions-intensive materials:
- iron and steel
- aluminium
- cement
- fertilisers
- electricity
- hydrogen
But the sector most relevant to us, and also the most affected by volume, is steel and its derivatives. Everything points to a considerable impact, both for manufacturers and distributors, since from 2026 importers will have to pay certificates based on the actual or default emissions of the product purchased.
This will translate into a notable rise in the cost of steel imported from countries such as India, Turkey, China or South-East Asian countries.
CBAM implementation phases
To ease the transition, the European Union has designed a roadmap split into two clear stages.
1.- Transitional phase: 1 October 2023 – 31 December 2025
During this period:
- Importers must submit quarterly reports with detailed data on direct and indirect emissions.
- There is no economic cost involved yet, so no certificates are paid.
- The aim is to gather information, train the sector and prepare companies and administrations for the system’s definitive operation.
It’s a kind of practice run, but a hugely important one, because everything being measured now will shape the final phase.
2.- Final phase: from January 2026
Yes, very soon, the real change arrives, because from that date onwards:
- Importers will have to register as authorised declarants.
- They will submit an annual declaration of the emissions of the products they import (the first, on 31 May 2026).
- It will be mandatory to buy CBAM certificates, equivalent to the amount of carbon emitted in producing the imported steel.
- An independent verification of emissions data will be required.
The upshot of all this is, mainly, that importing steel with a high carbon footprint will be much more expensive.
CBAM’s impact on the steel and metal industry in Spain
Although we’re still in the transitional phase, the effect of CBAM is already being felt in the Spanish market.
- Increased uncertainty and price volatility
Customers are bringing purchases forward, distributors are looking to secure supply and international prices are experiencing very pronounced swings.
- Cost differences between European and imported products
Steel produced in the EU, subject to the EU ETS, already includes decarbonisation costs, but imported steel will soon have to absorb them too. That will narrow the price gap, but in the short term it’s driving strategic shifts in purchasing.
- Greater pressure on traceability and transparency
Companies that import are required to gather very detailed emissions data. This means new structures, processes, audits and administrative costs.
- Changes in purchasing patterns
One of the most visible effects, and one we’re seeing directly at Ferros Texar, is that many customers are bringing orders forward to avoid the economic impact of CBAM. They prefer to secure material before the costs that will push up the price of imported steel come into force.
This has increased demand on distributors with available stock, especially those of us who can deliver quickly.
How we’re facing it at Ferros Texar: the importance of stock
At Ferros Texar we’ve spent years preparing for moments like this. If there’s one thing we’ve learned in almost two decades working alongside workshops, factories, cutting companies, construction and industry, it’s that stability is a fundamental value when everything around you seems to be shifting.
And today that means one thing: stock, stock, stock
Ferros Texar, a broad, stable and available stock
The volatility of the steel price and the new uncertainty created by CBAM have led to a rise in customers wanting to secure material before costs increase.
Thanks to our permanent stock of sheet metal, we can:
- offer more stable prices,
- avoid sharp fluctuations,
- guarantee fast delivery times,
- and provide security at an especially sensitive time for the sector.
Ferros Texar, stock purchased before price rises
Having material acquired before the market priced in the impact of CBAM, we can today keep competitive prices and immediate availability that directly benefits our customers.
Ferros Texar, always agility and trust
Faced with regulatory change, small and medium-sized businesses have something very valuable: agility. At Ferros Texar we adapt operations, logistics and processes quickly, without losing quality or responsiveness.
In moments of structural transformation like the current one, having a flexible, close and reliable supplier makes all the difference.
Looking to the future: the big changes ahead for the metal sector
CBAM is not a temporary measure. It’s part of a long-term European strategy to transform the industry towards more sustainable models. This means the coming years will continue to be shaped by regulatory changes, price adjustments and new environmental requirements.
At Ferros Texar we believe the best way to face these changes is with clear information, transparency and constant support for our customers.
As the market evolves, our priority remains the same:
offering quality products, reliable deliveries and a close service that makes life easier for those who trust us.
We know this new scenario raises questions. And that’s precisely why we want to be closer than ever to our customers.
Check our permanent stock of steel sheets and make sure you have the material you need, on time and with total security.
Our team is at your disposal to answer any questions, help you plan your purchases and support you through this new regulatory context.
