In the June 2026 issue of the eUpdate client magazine, Paul Brettnacher, director of customer relations at ArcelorMittal Europe – Flat Products, called on the European Union to expand both the Carbon Boundary Regulation Mechanism (CBAM) and steel trade measures for steel derivatives and processed products as soon as possible.

According to Brettnacher, the implementation of CBAM on January 1, 2026 and the introduction of new steel into the EU tariff quota regime from July 1, 2026 represent important first steps towards creating a more level playing field for European steel producers. However, he argues that these measures alone will not be enough to maintain the competitiveness of European industry.

The article highlights the growing volume of imported steel products, which currently goes beyond both CBAM and EU steel trade measures. As imports of finished products and semi-finished products continue to grow, Brettnacher warns that the perceived benefits of the new regulatory framework may be negated, with consequences that could extend far beyond primary steel production.

Special attention is paid to the value chain of electrical steel. Components such as plates, stator cores, rotor cores, electric motors and generators are identified as strategic products for Europe's transition to energy, electric mobility and industrial sustainability. The article notes that almost two thirds of the non-grain oriented electrical steel (NGOES) required for new electric motors and generators in Europe is currently supplied from outside the European Union.

Brettnacher argues that against the backdrop of a growing global surplus of steel production capacity and an increase in subsidized production in third countries, Europe is facing increasing competitive pressures across the entire production value chain. He cites concerns about the import of processed products, which are currently not covered by existing trade or carbon measures, which could weaken investment, employment and strategic industrial potential in the EU.

To solve these problems, the article suggests three priority actions by 2027:

• Expand CBAM to cover the entire NGO's downstream value chain, including the production of first-stage steel and secondary products such as electric motors and generators.
• Extend EU steel trade measures to the same categories of derivatives and recycled products, eliminating what is called a significant regulatory gap.
• Give priority to generators and electric motors.