Spanish crude steel production fell 24% year on year to 979,000 mt in October, a twelfth consecutive monthly decline, according to data published by industry group Unesid Dec. 14.
The latest decline means trailing 12-month production is down 15% year on year to 13.2 million mt as producers continue to limit output amid weaker demand, high energy prices and competition from imports.
Spain is Europe’s fourth largest steel producer, behind Germany, Italy and France with a maximum capacity of nearly 23 million mt.
Besides ongoing production cuts announced for Q4, which have been accompanied by temporary lay-off schemes, production in December to date is likely to be further affected by a week of industrial action in the Basque region at the start of the month and two national holidays falling on working days in the week started Dec. 5.
Spanish energy costs for large energy consumers have increased 53% year on year to Eur170.76/MWh ($181.87/MWh), according to Industry Association AEGE.
In terms of Spain’s steel recycling, the October volume was a six-month high of 863,000 mt, Unesid said, with the proportion to crude steel production at 88%, the greatest since September 2020.
The trailing 12-month volume was nonetheless 17% lower year on year at 10.2 million mt.
Platts, part of S&P Global Commodity Insights, assessed domestic HRC prices in Southern Europe at Eur645/mt ex-works Italy Dec. 13, down 23% since the start of 2022.
— Gianluca Baratti
