India's steel exports to Europe set to drop as EU carbon tax looms

India's steel exports to Europe are expected to decline due to the EU's upcoming carbon tax under the Carbon Border Adjustment Mechanism (CBAM), effective January 1. Indian steel mills, which export two-thirds of their products to Europe, are seeking alternative markets in Africa and the Middle East. The tax will increase costs for Indian steel, especially from blast furnaces, unless emissions are reduced. Companies are investing in electric arc furnaces to mitigate emissions and exploring new markets to offset potential losses in the EU.