Elmarakby Steel Reports CBAM Emissions to Boost EU Market Access

Elmarakby Steel Embraces CBAM Emissions Reporting

Egypt’s Elmarakby Steel has taken a significant step in aligning with EU climate regulations by voluntarily disclosing its carbon emissions under the Carbon Border Adjustment Mechanism (CBAM). According to S&P Global, the company reported 0.44 tons of CO₂ per ton of rolled steel for Q1 and Q2 of 2025. This disclosure includes both direct and indirect emissions and marks the company’s commitment to transparency and sustainability.

By proactively reporting its emissions, Elmarakby positions itself favorably within the European Union, where climate compliance is increasingly tied to market access. The company’s early action aligns with its broader decarbonization strategy and addresses the growing demand from international buyers for low-carbon steel products.

Voluntary reporting under CBAM also opens doors to green financing and premium pricing opportunities. Buyers and financial institutions are showing clear preferences for suppliers with credible low-emission profiles, especially within carbon-sensitive markets like the EU.

Steel Industry in Egypt Sees Strategic Modernization

To strengthen its competitive edge, Elmarakby Steel has partnered with SMS group to modernize its mini-mill. This upgrade will increase long product capacity from 400,000 to 460,000 tons annually while lowering operational costs. This investment enhances product offerings and aligns with global efficiency trends in steel manufacturing.

Meanwhile, Egypt’s broader steel sector is undergoing rapid transformation. In May, Suez Steel opened new facilities, including the country’s first heavy section, rail, and sheet pile mill. Additionally, China’s Xinfeng Group began constructing a $1.65 billion industrial park in Ain Sokhna’s Suez Canal Economic Zone. The first phase will produce auto parts, household goods, and hot-rolled steel.

These developments indicate Egypt’s growing ambition to become a regional steel powerhouse, integrating clean technology and export-driven strategies.

SuperMetalPrice Commentary:

Elmarakby Steel’s move to report under CBAM ahead of enforcement sets a precedent for other non-EU producers. As the EU sharpens its carbon scrutiny, early compliance will distinguish proactive companies from laggards. With CBAM becoming a de facto trade barrier, producers who can verify low-carbon operations will not only retain access to EU markets but also command premium pricing and better financing. Egypt’s coordinated push—through infrastructure investments and policy alignment—signals a shift toward more climate-conscious industrial policy in the MENA region.