Producers in Türkiye, Kazakhstan, South Africa and the Western Balkans face new competitive requirements as the EU’s Carbon Border Adjustment Mechanism (CBAM) adds installation-level emissions accounting and verification to existing factors such as ore availability, electricity costs and logistics.
Ferrochrome, ferromanganese and ferronickel fall within the current CBAM scope, while several other ferroalloys remain excluded. Facilities in the same industrial area can therefore face different EU border treatment depending on their products.
Electricity Mix and Emissions Verification
South African and some Balkan producers face exposure to carbon-intensive electricity, while Kazakhstan combines substantial mineral resources with a power system heavily reliant on fossil fuels. Türkiye’s diversified industrial base and established EU trade links provide commercial advantages, but emissions vary according to furnace efficiency and energy sourcing.
Proximity to European customers, established customs relationships and existing supply networks remain important. Default emissions values can weaken these advantages, making verified plant-level data increasingly important alongside traditional certificates of analysis.
Investment in Lower-Carbon Production
Potential investments include renewable power purchase agreements, captive solar and wind generation, energy storage, furnace upgrades, waste-heat recovery and more efficient reductant use. Financing these projects can help producers protect EU market access and maintain competitiveness.
Regional suppliers remain strategically important for diversifying Europe’s supply base. CBAM will increasingly distinguish producers able to demonstrate competitive carbon performance from those relying primarily on low-cost electricity and ore.
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