The Spanish steel industry is facing challenges due to rising energy prices, according to the Spanish steelmakers’ association Unesid. In 2023, production fell to nearly the level of 2020, when industrial activity was halted due to the coronavirus pandemic. However, the forecast for 2024 is moderately optimistic, with production expected to increase. The industry is committed to decarbonization, but steelmakers need the support of the Spanish authorities to ensure competitiveness.
High electricity prices have negatively affected the industry's competitiveness, with the average electricity consumption in the pool last year at 87.1 kWh, almost double that of 2019. High CO2 emission costs and a slowdown in European steel demand have also hampered the sector. Despite these challenges, ferrous scrap processing increased by 3.2% y/y to 9.3 million tons, and domestic steel consumption reached 12.6 million tons, up 1.2% from 2022.
In February 2024, Spanish steelmakers reduced steel production by 10.6% compared to the same month in 2023, to 890 thousand tons. Spain was ranked 17th in the global ranking of steel-producing countries by the WorldSteel Association. The industry is facing turbulence, but the initial data for 2024 is encouraging, with steelmakers committed to decarbonization and seeking support from the Spanish authorities to ensure their competitiveness in the market.