EU and the Pig Iron Market: A Decade of Dependence Coming to an End
The European Union has long been critically dependent on pig iron imports, primarily from Russia. This dependence became particularly evident in the last decade: Russian pig iron consistently accounted for over 60% of the EU’s external supply. Italy was the largest consumer — in 2024, it imported over 700,000 tons solely from Russia.
In 2025, the situation changed radically:
- The quota for Russian pig iron imports was limited to 700,000 tons;
- As of April 2025, 697,000 tons were already used, of which 524,600 tons went specifically to Italy (≈75% of total volume) (Oreaco, 2025);
- Starting from 2026, pig iron supplies from Russia will be completely banned in accordance with the EU sanctions policy.
These changes create a serious shortage in the market, especially for countries like Italy with significant raw material import dependence.
CBAM: The Carbon Border Adjustment Mechanism Reshaping Trade
From 2026, the CBAM (Carbon Border Adjustment Mechanism) — a new EU climate tool — will come into effect, imposing tariffs on the import of carbon-intensive products (including pig iron).
This means:
- All pig iron imports from third countries (such as Ukraine, Turkey, India, etc.) will be subject to additional CO₂ emission costs if the country lacks adequate carbon regulation;
- Cheap raw materials may become non-competitive due to high carbon footprints;
- According to S&P Global, Brazilian charcoal-based pig iron with a low CO₂ factor is becoming a priority for European buyers as a way to minimize CBAM costs.
“European consumers are increasingly focusing on suppliers with carbon-neutral or certified sources. Brazil is emerging as a temporary leader, but prices are already 20–25% higher,” — S&P Global.
Ukraine: Potential and Limitations
Although Ukraine historically ranked second in pig iron supply to the EU, war, energy crises, and logistical challenges have changed the situation.
- In January-June 2025, Ukrainian steel enterprises increased their exports of pig iron by 47.5% compared to the same period in 2024, to 883,170 tons. This is evidenced by GMK Center calculations based on data from the State Customs Service.
- During this period, 682.19 thousand tons of pig iron were shipped to the US, which is 51% more than in the same period last year, 106.54 thousand tons to Italy (+190.2% year-on-year), and 21.98 thousand tons to Poland (-26.6% year-on-year). (GMK Center, 2025);
- A significant part of Ukrainian products lacks CO₂ certification and falls under CBAM, reducing its attractiveness on the European market.
Thus, Ukraine has potential but at this stage cannot fully compensate for the reduction of Russian imports.
Secondary Raw Materials: Eastgas SRL Solutions Outside CBAM and Quotas
In the context of restrictions, secondary metallurgical products are coming to the forefront. Eastgas SRL offers precisely those solutions that meet the new requirements:
- Pig iron scrap derived from blast furnace slag
- A by-product of primary production, cleaned and classified.
- Not subject to CBAM — not a primary melting product.
- Suitable for use in traditional blast furnace production as well as electric arc furnaces (EAF).
- Briquettes from mill scale
- A concentrated source of iron with high metallic content.
- Compliant with circular economy standards.
- Not subject to quotas and does not require CBAM declaration.
- Suitable for use in traditional blast furnace production as well as EAF.
Both products have proven their efficiency as legal and stable alternatives to pig iron imports.
Conclusion: Solutions for Steelmakers
Given:
- Exhaustion of Russian quotas,
- High CBAM costs on “dirty” imports,
- Instability of supplies from third countries, EU companies should pay attention to secondary products that are not regulated by CBAM and not subject to quotas.
Such products — pig iron scrap and briquettes from mill scale offered by Eastgas SRL — represent a smart, legal, long-term, and environmentally justified alternative at a time when the industry is searching for new development vectors.
Explore Eastgas SRL products — here.
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