CBAM begins to affect import costs and raw material availability – Konstal

The Cross-Border Carbon Adjustment Mechanism (CBAM) is beginning to have a real impact on import costs, raw material availability, and purchasing decisions throughout the supply chain. This opinion was expressed by Emil Ceglarski, purchasing director at Polish metalworking company Konstal sp. z o.o.

He noted, in particular, that many important details regarding the European carbon tax were announced “at the last minute” at the end of last year, so it will take time to adapt relationships with suppliers.

“One thing is certain: the carbon tax, or cross-border carbon adjustment mechanism, means a constant increase in import costs and, accordingly, pressure on material prices. This effect is already clearly visible on the domestic market,” explained Ceglarski.

According to him, the market is already seeing price increases of 10-12% from the minimum level of recent months, especially for ribbed bars, flat rolled products, and cold-formed profiles — materials that are imported into the EU in the largest quantities. At the same time, price pressure in the second half of this year may be exacerbated by new EU protective measures – a reduction in quotas by almost half and an increase in customs duties on volumes exceeding quotas from 25% to 50%.

Given historical data, the steel market operates in repeating cycles, and CBAM does not change this dynamic but affects the level of costs at which the next phase begins, added Konstal’s purchasing director.

Earlier, Eurometal President Alexander Julius noted that the first two weeks after the final introduction of the mechanism were characterized by “confusion and uncertainty,” which was particularly difficult for small businesses. According to him, companies did not have a real opportunity to prepare properly, as important operational documents were published the day before the carbon duty was introduced.