24 April 2026 – The Member States forwarded the final agreed compromise proposal on the planned successor to the EU safeguard measure on certain steel products to the European Parliament. We have already had a first look at it. Nickel futures on the SHFE rose further on Friday, gaining a good 1.82%. Steel inventories in China are falling.
Nickel prices in Asia continue to climb
Nickel futures on the SHFE rose further on Friday, gaining more than 1.82%. LME nickel prices are also trending upward, having already risen by approximately 1.3% on Thursday to $18,625 per tonne. In early trading, three-month nickel was above $18,700.
Tight availability of nickel ore and sulphur
Analysts attribute the rise in nickel prices to several factors. Among them: a major nickel mine in Indonesia has announced an extended maintenance shutdown. In addition, the closure of the Strait of Hormuz has created an acute shortage of sulphur, which is urgently needed in both nickel and copper production.
Steel inventories in China continue to decline
Chinese steel inventories have fallen for the sixth consecutive week, driven according to media reports by significantly stronger domestic demand.
EU steel tariffs and quotas: compromise proposal on the table
On 23 April 2026, member states transmitted the final agreed compromise proposal for the planned successor to the EU safeguard measure on certain steel products to the European Parliament. We have already had a first look.
Steel tariffs and quotas – in brief
The start date remains 1 July 2026. Thirty product categories covering the majority of steel products are to be subject to a 50% tariff. In addition, the existing safeguard quotas are to be reduced by approximately 47%, which will amount to roughly 18.3 million tonnes of tariff-free imports.
The carry-over mechanism will be retained in full for the first quota year. Melt and pour declaration will be made mandatory but will have no effect on quota allocation for the time being. The Commission is also urged to keep the administrative burden on small and medium-sized enterprises to a minimum. Furthermore, the Commission is subject to tight review intervals with transparent reporting obligations, designed to ensure that the measure remains justified and proportionate.
EU Steel Tariffs: The Commission and steel mills did not get everything they wanted
On balance, our initial analysis leads us to conclude that the quotas and tariffs are to be introduced as proposed by the Commission. However, the compromise proposal contains several significant points on which the Commission and the well-known lobbyists of the domestic steel mills did not prevail. We welcome the fact that in these instances, the fundamental principles of democracy have put a stop to the greed of the steel producers and the client politics of a compliant Commission in Brussels.
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