Steel and iron products represent South Africa's largest CBAM exposure. The country produces approximately 40% of global ferrochrome — a critical input for stainless steel — making the steel sector the most financially exposed to CBAM of any SA industry.
South Africa's steel sector is anchored by Samancor Chrome (world's largest ferrochrome producer), Hernic Ferrochrome, Merafe Resources, and ArcelorMittal SA. Combined EU exports exceed €1.2 billion annually. The basic oxygen furnace (BOF) route used by most SA steelmakers results in embedded emissions of approximately 1.8-2.1 tCO₂/tonne — close to the EU default value of 2.18 tCO₂/tonne (with 10% markup).
Identify all steel products exported to EU using CN codes 7201-7229
Calculate embedded emissions using actual production data (Scope 1 + Scope 2)
Commission ISO 14065 accredited verifier to certify emission values
Provide verification report to EU importer before CBAM declaration deadline
Register in CBAM Registry to demonstrate compliance readiness
SA steel embedded emissions are close to EU defaults. Investment in electric arc furnace (EAF) technology or renewable electricity could significantly reduce CBAM liability.
CBAM Cost Estimate
Key SA Exporters