Spanish Unesid calls to support the country’s steel industry

Spain’s Unesid calls for support for the country’s metallurgical industry in difficult conditions. This was discussed at the annual general meeting of the industry association.

Bernardo Velázquez, president of Unesid, stressed that despite some signs of recovery in production and consumption, the Spanish steel industry is experiencing difficulties this year due to challenging conditions in the international market, rising energy costs, the accelerated green transition, and competition from third countries.

The association calls for an ambitious European industrial policy, predictable energy prices, and a fairer regulatory framework. Without these elements, strategic autonomy in key sectors such as energy, defense, and infrastructure will be at risk.

In addition, Unesid calls for an effective and sustainable trade defense instrument.

“The recent increase in tariffs on European steel by the US and the future abolition of protective measures pose a critical challenge. We cannot allow Europe to be flooded with steel produced without complying with the environmental and social standards that we demand here,” the association said in a statement.

As noted by Carola Hermoso, CEO of Unesid, writes Metales y Máquinas, the sector has demonstrated its ability to adapt. However, it cannot cope with the consequences of unfair competition and energy costs on its own.

The recent abolition of the 80% discount on electricity bills will result in additional costs of €40 million per year for steel companies, which consume around 10 TWh per year.

“There is an urgent need to reduce electricity bills through fair charges and efficient spending if we want to maintain activity and employment,” she said.

Unesid called for a thorough review of the Energy-Intensive Consumers Statute. In addition, the industry needs the approval of more tools to stimulate the green transition.

According to the association, steel consumption in Spain grew by 6.5% year-on-year in 2024, reaching 13.5 million tons. This was mainly due to a significant increase in imports from non-EU countries.

Domestic production grew by 3.7% y/y last year to 11.9 million tons. Exports amounted to about 7.7 million tons after a decline in the previous two years, but they increasingly focused on European markets due to rising tariff barriers in countries such as the US and Turkey.

As GMK Center reported earlier, Spanish steel companies increased steel production by 6.1% in January-April 2025 compared to the same period in 2024, to 4.32 million tons.