South Korea and Vietnam recorded weaker performance in the European Union steel import market in the first half of 2026, while Indian shipments were broadly stable. The changes are linked to differences in product demand and supplier positioning as EU trade restrictions and carbon reporting requirements affect procurement decisions.
According to EUROFER, deliveries from South Korea to the EU fell 8% year on year. Vietnamese shipments declined by 25%. Indian volumes increased by approximately 1%.
Finished-steel import volumes shift across origins
South Korea represented 12% of EU finished-steel imports by volume, compared with 7.7% for India. Over the same period, total finished-steel imports decreased by 3%. Flat steel products were described as more resilient than long products.
The contrasting outcomes among Asian exporters point to differences in product-level demand. South Korean producers supply higher-specification flat steel, while Indian steelmakers serve a range of flat and long steel markets with different customer bases and emissions profiles.
Vietnamese shipments include categories of processed and semi-finished materials. Changes in European demand between these product groups can affect national import rankings without indicating a change in the competitiveness of specific steelmaking facilities.
Product mix and facility characteristics affect buyer comparisons
For European buyers, comparing suppliers involves more than looking at aggregate national shipment totals. Product specifications, end-market demand, and the characteristics of individual production facilities influence commercial performance.
This approach is relevant when importers assess how different origins align with particular product needs. It also reflects that shipment composition can vary even when national delivery trends move in different directions.
July 2026 regulation tightens tariff-quota access
Tighter trade access is another factor affecting Asian suppliers’ outlook for EU sales. An EU steel regulation taking effect in July 2026 reduced annual duty-free import access to approximately 18.3 million tonnes. It also set a 50% tariff on imports above applicable allocations.
Historical trade patterns, product classification, and quota utilisation can influence whether an importer secures required volumes at a competitive delivered price. Although the measures apply at EU level, their practical effects vary by origin and by the product composition of individual shipments.
For South Korean, Indian, and Vietnamese exporters, access to available quota volumes is therefore a key consideration alongside production costs and demand for their respective product ranges.
CBAM adds installation-linked carbon calculations
The EU Carbon Border Adjustment Mechanism (CBAM) introduces an additional carbon-cost calculation for covered imports. Importers must link goods to applicable embedded-emissions values under CBAM rules.
Verified actual emissions data can be commercially valuable when European Commission default values exceed a plant’s measured performance. National origin is not treated as a substitute for installation-specific information because producers within South Korea, India, and Vietnam 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 calculation of carbon liabilities but does not create a uniform carbon surcharge for each tonne of imported steel.
The final product-level cost depends on the emissions methodology used, relevant benchmarks, and permitted deductions. A standard carbon premium applied to national import averages would not reflect differences between individual products and production facilities.
Diversification decisions intersect with quota 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 trade figures therefore reflect diverging outcomes among Asian suppliers rather than a single shift toward one region. Future competitiveness is expected to depend on product quality, reliable delivery, tariff-quota access, verifiable emissions data, and commercially competitive pricing.