ArcelorMittal said on 5 November that all of its European blast furnaces had returned to operation, as the European Union’s Carbon Border Adjustment Mechanism (CBAM) and tariff-rate quota framework improved the outlook for regional steel production. Its third-quarter results showed stronger earnings and shipments, but do not establish that CBAM alone caused the operating improvement.
The company reported third-quarter EBITDA of approximately 1.80 billion euros, up 34% year on year, while adjusted net income rose to approximately 770 million euros. European flat-steel shipments increased from the preceding quarter, despite that period normally bringing weaker seasonal demand. ArcelorMittal projected double-digit year-on-year growth in European flat-steel shipments in the fourth quarter of 2026.
Chief Executive Aditya Mittal said the combination of CBAM and the EU’s tariff-rate quota framework was creating more balanced conditions for European producers. ArcelorMittal expects the benefits of the new EU trade framework to become more fully visible in 2027.
As domestic capacity utilisation rises, the return of the furnaces could change regional demand for imported semi-finished products and the availability of finished steel. Higher energy costs have increased production expenses, while import restrictions and lower inventories have supported producers’ ability to pass through some of those costs. Tariff-rate quotas, demand, energy prices, and ArcelorMittal’s own restructuring and investment decisions are also contributing to its operating position.
For steel producers and processors in Serbia, the developments support modelling EU market access using carbon costs, tariff restrictions and product-specific demand, rather than carbon prices alone. For industrial lenders, production capacity and expected European selling prices may change as the new framework becomes established. ArcelorMittal called for additional protection for steel-intensive downstream products, reflecting industry support for extending the EU’s trade and carbon-leakage framework. The durability of its improved European operating position will depend on demand, energy costs and the final design of further industrial protection measures.