Around 40 major German corporations including ArcelorMittal, ThyssenKrupp, and BASF have written to EU leadership calling for a fundamental rethink of climate policy, arguing that EU ETS carbon costs of around EUR 80/tonne are undermining European competitiveness while non-European rivals face little or no equivalent burden. Bavaria's Economy Minister Aiwanger called on the Commission to immediately suspend — and ideally abolish — the EU ETS. Critics note, however, that the same corporations have cumulatively received nearly EUR 464 billion in free ETS certificates since 2005, representing hidden subsidies never available to SMEs, who nonetheless help fund them. The EU Commission plans to present proposals for reorganizing emissions trading next month.

The European Commission has escalated its stainless steel trade dispute with Turkish exporter Çolakoğlu Metalurji to the Court of Justice of the European Union. The case concerns EU anti-circumvention measures on stainless steel sheets and coils originating in Indonesia but shipped from Turkey, and the Commission is seeking to overturn parts of an earlier ruling that favored the Turkish exporter.

According to market sources, the EU's Carbon Border Adjustment Mechanism (CBAM) concludes its first definitive quarter today with multiple unresolved administrative hurdles. The EU Commission is set to announce the initial CBAM certificate price on April 7, yet country-specific default values remain flawed, hindering reliable cost calculations. Furthermore, the tender for the central trading platform has faced delays, and a backlog of nearly 10,000 companies awaits registration. The system's viability is further challenged by a severe lack of certified emissions validation bodies and looming changes to the EU Emissions Trading System (ETS) benchmarks, which directly dictate CBAM pricing structures and future allocations.

The European Commission will update Emissions Trading System (ETS) free allocation benchmarks and utilize the Market Stability Reserve to curb carbon price volatility "within days". President von der Leyen announced a medium-term ETS review to establish a "realistic trajectory" for free allowances beyond 2034. The EU is also proposing a $35 billion "ETS Investment Booster" fund to finance decarbonization projects, prioritizing lower-income states. To address soaring energy costs, the Commission plans to allow member states to reduce grid charges for energy-intensive industries and mandate lower taxes on electricity compared to fossil fuels. This follows intense pressure from steelmakers and EU nations demanding an urgent ETS overhaul by July.

According to sources, the European Commission is facing growing institutional pressure for allegedly attempting to sideline the European Parliament to finalize the India trade deal. Following the stall of the Mercosur agreement, accusations are mounting that the Commission is bypassing democratic oversight and parliamentary participation rights in a rush to secure a rare trade policy success story.

On January 9, the Gerber Group formally alerted the European Commission to "significant irregularities" in the new CBAM default values published on December 31, 2025. CEO Thorsten Gerber highlighted specific anomalies in Taiwan's stainless steel segment, noting technically implausible data where semi-finished products were assigned higher emissions than processed ones. The Group also alleged that Taiwan's values appeared to be copied from other origins rather than based on its specific EAF production structure. Warning that such errors create legal and economic uncertainty, the Gerber Group has demanded an immediate correction.

EU Commissioner Maroš Šefčovič announced that the European Commission will launch preparatory work on a new measure to curb aluminium scrap leakage, with adoption planned by spring 2026. Over one million tonnes of scrap leave Europe annually, undermining circularity and decarbonisation goals, while US Section 232 tariffs and strong Asian demand have already idled 15% of EU recycling furnace capacity. European Aluminium welcomed the move, with Director General Paul Voss calling it “a strong and timely statement of intent” and praising the EU’s decisive action to secure access to raw materials vital for Europe’s green transition.

The European Automobile Manufacturers’ Association (ACEA) has warned the EU Commission that a "proper implementation" of the CBAM (Carbon Border Adjustment Mechanism) by its January 1, 2026 start date is "practically impossible." ACEA stated that "far too many critical unknowns" remain, including missing legal provisions, calculation data (benchmarks/defaults), and a certified verifier network, making it impossible for companies to perform mandatory cost calculations.

【SMM Stainless Steel Flash】European steelmakers have long lobbied for a scrap export ban, and revisions to the Waste Shipment Regulation already restrict flows to OECD countries. But SMEs in the recycling industry warn of severe damage if Brussels proceeds further. A new paper by German scholar Frank Pothen argues that recycled steel saves 1.66 tons of CO₂ per ton, regardless of where it is melted, and that Europe’s exports mainly reflect weak demand, not oversupply. He cautions that trade barriers risk retaliation, reduced access to high-quality stainless scrap, lower global utilization, and higher emissions. The EU Commission itself admitted in a 2022 anti-subsidy probe against Indonesian stainless steel that export bans curb entrepreneurial freedom and distort competition. Industry voices insist the real solution lies in tackling structural issues such as high energy costs, better recycling standards, and investment in quality – not protectionist trade barriers.

Futures market: Overnight LME copper opened at $9,635.5/mt, initially fluctuated downward to hit a session low of $9,598/mt, then steadily climbed upward and reached a session high of $9,657.5/mt near the close, finally closing at $9,657.5/mt with a 0.15% gain.