5 March 2025 – Nickel prices on the European commodity exchange LME climbed to their highest level in six weeks yesterday. On the SHFE today, they even reached their highest level since October 2024. Economic recovery needs free markets and free trade – but where are the alternatives to the tariff hammer?
Nickel prices on SHFE and LME continue to rise
Nickel prices on the European commodity exchange LME climbed to their highest level in six weeks yesterday. The price increase continued today, Wednesday, and passed the USD 16,000 per tonne mark.
SHFE nickel at its highest level since October 2024
On the SHFE, nickel contracts were even able to improve their monthly average to their highest level since October 2024, trading at around USD 17,700 per tonne today.
The rising nickel prices are also reflected in Asian nickel pig iron, stainless steel scrap and stainless steel prices, which rose by up to 0.8% today.
Export restrictions instead of tariffs?
Hardly any other country is more dependent on the export of goods and thus on open markets than China. It is therefore hardly surprising that China has introduced fewer tariffs or market protection measures on foreign imports than other major economies.
Instead, China is increasingly relying on export restrictions for critical raw materials in which the country has dominated mining and production for years – e.g. rare earths. But also for other metals, such as in early February 2025 in response to the introduction of new US tariffs.
With export controls on tungsten, molybdenum, tellurium, bismuth and indium, for which China is considered the most important producer country, China can make access to essential raw materials significantly more difficult for global industry.
Tariffs are seen as a driver of inflation
Tariffs are generally regarded as drivers of inflation and usually make the economies that have imposed them poorer. This is economic consensus and has been scientifically proven many times over. Politicians are also aware of this and never tire of emphasising how harmful tariffs actually are and how it would be better to focus on free trade.
Despite this, the tariffs hammer is still wielded, often in the form of anti-dumping and anti-subidy measures, thereby penalising their own population. The best example here is the European Union, which knows exactly what tariffs mean, but still repeatedly gives in to the demands of domestic manufacturers. Alternative ideas to tariffs? None.
No alternatives to tariffs in the EU?
It is difficult to overlook what the European Union has achieved, especially with regard to its steel makers. While one market protection measure after another has been introduced on steel and stainless steel in recent years, steel makers have still not managed to adapt to the changed market conditions. The demands of the EU steel lobby remain the same as ever. It cannot and will not demonstrate any success in structural change.
Strategic Dialogue on the Future of the Steel sector
This is also shown by the composition of the kick-off event for the EU Commission’s Strategic Dialogue on the Future of the Steel sector, at which, as expected, no genuine small and medium-sized companies were welcome. The Commission does not want change.
A rethink is urgently needed here. Change and progress can only be achieved if there is the necessary pressure for change. Instead of even more tariffs and market protection, the European market in particular now needs the courage to change and significantly more openness. Any tightening up makes Europe poorer and harms the competitiveness of domestic SMEs and ultimately the consumer and tax payer, no matter how you sell your tariffs in the end.
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Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
