The Spanish steelmakers association (UNESID) has raised the alarm over rising energy costs faced by the Spanish steel sector, estimating additional costs of around €658 million between March and December 2026. Of this amount, approximately €452 million is expected to be incurred in the September-December period, compared to €206 million accumulated through August.
According to the association's estimates, the overall impact includes €403 million in additional electricity costs and €255 million in additional gas costs. In the fourth quarter, UNESID expects electricity prices to be around €143/MWh and natural gas prices to stand at approximately €76/MWh. In addition, electricity system balancing services are estimated to cost consumers €21.60/MWh. Cost pressures are already prompting some steelmakers to halt production during hours when electricity prices are highest.
“The steel industry cannot indefinitely absorb energy costs that undermine our ability to produce, invest and compete,” Carola Hermoso, general director of UNESID, stated, calling for immediate measures and structural action to ensure stable, predictable and competitive energy supplies for Spanish companies.
UNESID is therefore calling for an emergency energy plan to be implemented in 2026 and extended into 2027. Its main requests include increasing the funding allocated to compensation for indirect CO₂ costs to at least €1 billion and making the 80 percent reduction in electricity grid charges for energy-intensive industries permanent. Such a measure would help narrow the energy cost gap between the Spanish steel industry and its European competitors, supporting the competitiveness of a sector that is strongly export-oriented. Around 70 percent of Spanish steel production is exported, with approximately two-thirds of these volumes destined for other European Union countries.
According to the association, rising energy costs are exacerbating an already challenging environment for the Spanish steel industry, characterized by weak European demand, increasing pressure from Asian imports, difficulties in the US market, and rising logistics and raw material costs.
UNESID has presented its requests to the Spanish government, which has acknowledged the complexity of the current energy situation and indicated that new measures are being considered to mitigate its impact on the sector.
