South Korea and Vietnam reduced their deliveries to the European Union’s steel market in the first half of 2026, while Indian shipments were broadly stable. The changes are linked to differences in product demand and supplier positions as EU trade restrictions and carbon reporting requirements affect purchasing decisions.
EU trade data cited by EUROFER show South Korean deliveries down 8% year on year. Vietnamese shipments fell 25%, while Indian volumes rose by approximately 1%.
Changes in finished-steel volumes and supplier shares
Overall finished-steel imports into the EU declined by 3% during the period. Flat steel products proved more resilient than long products, contributing to differences across product categories.
South Korea represented 12% of EU finished-steel imports by volume. India accounted for 7.7%, reflecting the contrasting shipment trends among the three origins.
Product mix affects rankings among Asian exporters
The diverging outcomes among Asian suppliers point to the role of product-level demand. South Korean producers supply higher-specification flat steel, while Indian steelmakers serve a range of flat and long steel markets.
The customer bases for those markets also differ, alongside emissions profiles tied to production routes. Vietnamese shipments cover categories of processed and semi-finished materials, so shifts in European demand between product groups can change national import rankings.
For European buyers, comparing suppliers requires more than looking at aggregate national shipment figures. Product specifications, end-market demand, and characteristics of individual production facilities influence commercial performance.
EU quota rules from July 2026 shape access and costs
Tighter trade access is another factor affecting the outlook for Asian exporters. An EU steel regulation taking effect in July 2026 reduced annual duty-free import access to approximately 18.3 million tonnes.
The same regulation sets a 50% tariff on imports above the applicable allocations. Historical trade patterns, product classification, and quota utilisation can determine whether importers secure required volumes at competitive delivered prices.
Although the measures apply at EU level, practical effects vary by origin and product composition within individual shipments. For South Korean, Indian, and Vietnamese exporters, access to available quota volumes is therefore relevant alongside production costs and demand for their product ranges.
CBAM calculations depend on embedded emissions at installation level
The EU Carbon Border Adjustment Mechanism (CBAM) adds a separate carbon-cost calculation for covered imports. Importers must link goods to applicable embedded-emissions values under CBAM rules.
The use of verified actual emissions data can be commercially valuable when European Commission default values exceed a plant’s measured performance. National origin is not a substitute for installation-specific information because steel producers may use different technologies, precursor materials, and emissions-accounting boundaries.
The third-quarter 2026 CBAM certificate reference price was €82.32 per tonne of CO₂ equivalent. The reference price supports carbon-liability calculations but does not create a uniform carbon surcharge per tonne of imported steel.
The final product-level cost depends on the applicable emissions methodology, relevant benchmarks, and permitted deductions. A standard carbon premium applied to national import averages would not capture differences between products and production facilities.
Diversification decisions incorporate quota availability and carbon liabilities
Industrial buyers in Germany, Italy, and other European manufacturing centres continue to consider supply diversification where procurement is concentrated in a single country. However, expanding the supplier base does not automatically reduce purchasing costs once quota availability, carbon liabilities, and financing expenses are included.
The first-half figures show diverging outcomes among Asian suppliers rather than a uniform shift toward one region. Future competitiveness will depend on product quality, reliable delivery, tariff-quota access, verifiable emissions data, and commercially competitive pricing.