1 September 2025 – Nickel prices on the European commodity exchange LME rose sharply in the last week of August compared to the previous week. Prices on the SHFE are also moving upward. Meanwhile, thyssenkrupp is pushing for a weakening of the EU Emissions Trading System (ETS) – the steel giant wants the free allocation of CO2 certificates extended until 2050.
Nickel Prices Rise on LME and SHFE
Nickel prices on the European commodity exchange LME increased by more than 2.8% in the last week of August compared to the previous week, closing at USD 15,380/MT on Friday. SHFE nickel contracts ni2509 and ni2510 also gained up to 1.8% over the same period. At the start of this week, both Asian nickel contracts continued their upward momentum, rising again by 1.8%.
Chinese spot market prices for imported iron ore (65% Fe content) also posted a significant increase on Monday, climbing by as much as 3.2%.
thyssenkrupp Calls for Weaker EU Emissions Trading Rules
According to media reports, Germany’s largest steel maker thyssenkrupp Steel Europe has requested that the European Union extend the free allocation of EU ETS certificates until at least 2040. Ideally, thyssenkrupp would like these certificates to be granted free of charge until 2050. However, under the EU’s current plans, the free allocation of CO2 certificates is scheduled to expire by 2034. Any changes to EU ETS regulations would have far-reaching consequences.
Steel Makers Have Received Free CO2 Certificates Since 2005
Like other EU steelmakers, thyssenkrupp has benefited from the free allocation of ETS certificates for its substantial CO2 emissions since 2005, effectively securing indirect subsidies worth billions of euros. In addition, European steel makers have generated increasing revenues in recent years from selling surplus ETS certificates. In 2023 alone, these so-called windfall profits from certificate sales are estimated to have exceeded €3 billion.
No Substantial CO2 Reductions in Steel Production Since 2014
The EU ETS has not led to meaningful reductions in CO2 emissions from steelmaking. Since at least 2014, there has been no significant decrease in emissions-apart from reductions linked to lower steel output.
thyssenkrupp’s Demands Seen as Unrealistic
thyssenkrupp’s call for extending free EU ETS allocations appears to be little more than a political smokescreen to pursue other agendas. The EU ETS is closely tied to a broader framework of European and national regulations. Significant changes would also be required to the already problematic Carbon Border Adjustment Mechanism (CBAM), which otherwise risks further violations of WTO rules.
To genuinely cut its CO2 emissions, the steel giant would need to invest heavily in new production technologies. However, since 2005, thyssenkrupp and the other European steel makers have consistently failed to make such investments-demonstrating clearly that free allocation of EU ETS certificates does not incentivize emission reductions. Instead, it primarily encourages steel makers to profit from selling surplus certificates-preferably until at least 2050.
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