- Prices stay largely stable amid muted trade
- CBAM may raise import costs by up to 45%
SteelDaily: European stainless steel prices remained stable during September and early October amid uncertainty over the EU safeguard review and the upcoming Carbon Border Adjustment Mechanism (CBAM). Despite mill attempts to raise prices, trading activity was muted, with Nordic 304-grade stainless steel prices steady at EUR 2,300-2,400/t ($2,664-2,780/) and 316-grade inching higher due to alloy surcharge increases.
Lead times for stainless steel manufacturers are averaging 4-5 weeks, and inventory levels vary regionally. Southern Europe, including countries such as Italy and Poland, is experiencing high stock levels, whereas Central and Western Europe maintain more balanced inventories. Some mills in Southern Europe have proposed an EUR 20/t price hike for November delivery, but actual transaction prices have not reflected this increase.
Ahead of CBAM’s January 2026 implementation, several distributors are accelerating import volumes due to concerns about the added costs associated with carbon emission certificates. The implementation of CBAM is expected to increase import costs for stainless steel by 20-45%, making early inventory buildup a strategic move for importers.
On 7 October, the European Commission introduced new safeguard proposals, which include halving tariff-free quotas and increasing tariffs on additional imports up to 50%. They also proposed the “Melt and Pour” rule to block indirect imports through third countries, preventing evasion tactics such as offshore production combined with onshore assembly. These measures have been praised by the European Steel Association and Finnish stainless steelmaker Outokumpu as crucial steps to protect the EU steel industry and ensure fair competition.
Looking ahead, the market’s direction is expected to be shaped more by CBAM cost structures and the clarity of EU trade policies than by short-term price movements. Analysts foresee possible significant changes in the stainless steel distribution landscape in Europe leading up to the full enforcement of CBAM, highlighting a period of adjustment and uncertainty for the industry.
Note: This article has been published in accordance with a content exchange agreement between SteelDaily and BigMint.
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