The European Union's Carbon Border Adjustment Mechanism will significantly impact global scrap demand patterns, according to experts at the New Horizons conference. The regulation imposes carbon costs on imported steel based on production emissions, creating incentives for scrap-intensive electric arc furnace routes generating 75% lower CO₂ than blast furnaces. This could elevate global scrap prices, redirect material flows toward Europe, & intensify competition for secondary materials. The mechanism generates trade tensions regarding protectionism & developing economy treatment while imposing complex compliance burdens. CBAM may catalyze investments in electric arc furnace capacity & scrap processing infrastructure as producers adapt.