Ferrous products obtained by direct reduction of iron ore (DRI / HBI). Used as low-carbon feedstock for EAF steelmaking.

Why is DRI lower-carbon than pig iron?

DRI uses natural gas (or hydrogen) to reduce iron ore -- bypasses the coke-fired blast furnace. Direct emissions are 0.6-1.0 t CO2/t for gas-based DRI; near-zero for hydrogen DRI.

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CN 7203

Name: CN 7203 -- Ferrous products obtained by direct reduction of iron ore and other spongy ferro
Brand: AutoCBAM
SKU: 7203

Ferrous products obtained by direct reduction of iron ore and other spongy ferrous products, in lumps, pellets or similar forms; iron having a minimum purity by weight of 99,94%, in lumps, pellets or similar forms

✓ In scope of CBAM Iron and steel

CBAM cost preview

Live ETS price: €78.73/t CO₂. Sample: 1 tonne of CN 7203 at default factors costs ~€35.23 in CBAM certificates today.

Direct emissions: 4.2 t CO₂/t
Indirect emissions: 0.275 t CO₂/t
CBAM cost (1000 t shipment): €35,232

How is this calculated?

CBAM certificate cost = embedded emissions × ETS price × (1 − free-allocation factor) × phase-in markup.

Phase-in 2026: 10% of full certificate cost. Free allocation assumed 0% in this preview.

Calculate my CBAM cost →

Default embedded emissions

When you cannot collect verified supplier data, the EU lets you use these default values for the Iron and steel sector.

Origin	Direct emissions	Indirect emissions	Total
India	4.2	—	4.2
Russia	2.01	—	2.01
Argentina	1.03	—	1.03
Algeria	0.81	—	0.81
Canada	0.76	—	0.76

t CO₂e per tonne of product. Source: EU Implementing Reg. 2025/2621 Annex IV.

Top exporters into the EU

Eurostat Comext, latest available year. Volumes shown are extra-EU imports (tonnes).

Origin	Tonnes / yr	Share
India	220,000	100%
Russia	0	0%

Source: Eurostat Comext annual extra-EU trade.

How to comply for this code

Reviewed by AutoCBAM team — last updated 2026-04-28.

Methodology guide -- CN 7203 (DRI / HBI)

DRI (Direct Reduced Iron) and HBI (Hot Briquetted Iron) are low-carbon iron feedstocks. Strategic CBAM imports as the EU steel sector decarbonises.

Step 1 -- understand the natural-gas vs. hydrogen split. Most current DRI is gas-based (Midrex, HYL); hydrogen-DRI is starting to scale (HYBRIT in Sweden, H2 Green Steel). Hydrogen DRI is near-zero emissions; gas DRI is 0.6-1.0 t CO2/t direct.

Step 2 -- request verified data with the reduction pathway. Verifier should disclose the reductant gas mix (natural gas / hydrogen / blend) and the upstream electricity source for the DRI plant.

Step 3 -- monitor growing low-carbon DRI supply. Several global projects (HBIS, Hyundai, MIDREX licensees) are developing low-carbon DRI capacity. Strategic CBAM advantage for early-mover importers.

Frequently asked questions

What is CN 7203?: Ferrous products obtained by direct reduction of iron ore (DRI / HBI). Used as low-carbon feedstock for EAF steelmaking.
Why is DRI lower-carbon than pig iron?: DRI uses natural gas (or hydrogen) to reduce iron ore -- bypasses the coke-fired blast furnace. Direct emissions are 0.6-1.0 t CO2/t for gas-based DRI; near-zero for hydrogen DRI.

Get an emissions cost report for this product

Free PDF with sector defaults, top-3 origin countries and an ETS-linked cost forecast for CN 7203.

Reference data only — confirmed CBAM scope ultimately depends on TARIC declaration and the latest amendments to CBAM Annex I.