The Spanish steel industry has warned that it continues to face significant challenges despite some positive developments, calling for stronger trade protection measures and a more ambitious industrial policy to safeguard the competitiveness of European producers.
Speaking at the Spanish steelmakers association UNESID’s 2026 General Assembly, representatives of the Spanish steel association identified geopolitical tensions, global steel overcapacity exceeding 640 million mt, increasing trade disputes and high energy costs as key concerns for the sector.
UNESID emphasized that steel remains a strategic material for industries including energy, infrastructure, mobility, construction, defense and clean technologies. According to the association, Europe’s decarbonization ambitions and strategic autonomy depend on maintaining a strong and competitive steel industry.
Spanish steel market weakens in 2025
According to data released by UNESID, Spain’s crude steel production totaled 11.8 million mt in 2025, declining by 0.4 percent year on year. Apparent steel consumption also fell slightly, decreasing by 0.5 percent to 13.4 million mt. The second half of the year was characterized by weaker market activity as uncertainty increased across international markets.
Steel deliveries to the domestic market declined by 1.1 percent to approximately 12 million mt. Domestic sales remained stable at 6.4 million mt, while deliveries to other European markets reached 3.9 million mt. Exports rose by 3.3 percent to nearly 8 million mt, supported by a 6.6 percent increase in shipments to EU countries. However, exports to third countries declined by 5.1 percent. Meanwhile, imports remained at historically elevated levels, reaching nearly 10.4 million mt, including 5.5 million mt imported from other EU member states.
Domestic producers lose market share in 2026
During the first quarter of 2026, apparent steel consumption remained broadly stable, declining by only 0.1 percent. Demand was primarily supported by activity in the construction sector. Despite stable consumption, Spanish steelmakers continued to lose market share. Crude steel production fell sharply by 21.1 percent, while total deliveries declined by nearly 10 percent.
At the same time, imports from third countries increased by 2.3 percent, maintaining competitive pressure on both Spanish and European producers. UNESID noted that approximately one-third of all steel consumed in Spain now originates from non-EU countries and warned that global overcapacity and rising trade barriers in other regions could lead to additional steel volumes being redirected toward the European market.
Industry calls for stronger EU trade measures
To address these concerns, UNESID urged the European Union to strengthen its trade defense framework. The association called for stronger trade protection measures, the extension of safeguards to downstream steel products, the incorporation of the “Melt & Pour” criterion, broader application of the Carbon Border Adjustment Mechanism (CBAM) throughout the steel value chain and stricter customs controls to prevent circumvention practices. UNESID also advocated public procurement policies that prioritize European steel in strategic sectors such as energy, infrastructure, mobility and defense.
Energy costs remain a key competitiveness issue
The association reiterated that energy costs continue to be one of the main challenges affecting both competitiveness and decarbonization efforts. While welcoming recent measures introduced by the Spanish government to reduce industrial energy costs, UNESID called for tax reductions and support mechanisms due to expire on June 30, 2026, to be extended.
The association also urged policymakers to strengthen Spain’s Energy-Intensive Consumer Statute, ensure continued access to competitive electricity prices and increase compensation for indirect carbon costs within the limits permitted by EU regulations. According to UNESID, addressing both trade-related and energy-related challenges will be critical to preserving the competitiveness of Spain’s steel industry amid growing international market pressures.
