Unesid: Workweek reduction would undermine Spanish steel sector
Spain’s steel industry warns that a proposed cut to the national workweek could severely undermine production, raise costs and threaten thousands of jobs, Kallanish notes.
The proposed legislation would shorten the working week from 40 to 37.5 hours. Such a change could have “devastating and irreversible” consequences for the steel industry, according to the steelmakers’ association Unesid. If passed, the law would increase labour costs and reduce operational flexibility, especially in energy-intensive sectors such as steelmaking. It could put thousands of high-quality jobs at risk and force production cuts and shift reductions, according to Unesid’s director of organisation and human resources, Gema Palazón.
She notes that in the current context of economic uncertainty and industrial weakness in Europe, which has prompted the EU to rethink its production model, the measure threatens to further undermine the Spanish steel industry. The sector is already under pressure from international competition and the costly demands of decarbonisation and industrial transformation.
“If this law is approved, the consequences could be devastating and irreversible for the steel industry, putting thousands of stable, high-quality jobs at risk,” Palazón comments.
Some supporters argue that large companies will remain unaffected. However, the Unesid executive stresses that reduced working hours will directly impact the operational flexibility of steel plants.
“Cutting working hours will inevitably lead to adjustments in production activity and employment. If production must align with the shorter workweek, we will see reduced output, fewer shifts, and plant shutdowns,” Palazón explains.
This would result in a lower domestic supply of essential products like steel, whose production continues to decline despite a 6.5% increase in consumption last year. To meet demand, Spain would have to increase imports, negatively affecting GDP and the national economy.
“This could mean the end of the steel industry in Spain,” Palazón concludes.
Todor Kirkov Bulgaria
Hydnum Steel secures €60 Million for Spain’s first Green Steel plant
Hydnum Steel has been awarded €60 million in funding by the Spanish Government under the PERTE for Industrial Decarbonisation, part of the EU’s Next Generation EU programme. The funding will support the construction of southern Europe’s first green steel plant, located in Puertollano, Spain.
This pioneering project aligns with the EU’s goals of reindustrialisation, strategic autonomy, and climate neutrality, and represents a major step forward for sustainable flat steel production in Europe.
Hydnum Steel has already secured 75% of its initial production through strategic agreements with key industrial players, including Gonvarri Industries, Thyssenkrupp Materials Processing Europe, and Knauf Interfer.
The initiative also pays tribute to Agustín Escobar, one of the visionaries behind the project, whose legacy continues to inspire the plant’s mission.
The project has been declared a Priority Project by the Government of Castilla-La Mancha and recognised by the World Economic Forum as one of the five leading global projects in industrial decarbonisation.
For more information: hydnumsteel.com
Spanish galvanised steel sector calls for EU ‘reindustrialisation’
The Spanish galvanised steel sector is calling on the EU to implement measures to guarantee reindustrialisation, ensuring energy transition progress as well as manufacturing independence amid a complex geopolitical landscape.
“The EU must reindustrialise, and in this process, galvanised steel is key, not only for continuing the energy transition but also for strengthening other sectors such as construction, transport, and automotive,” Spanish Technical Galvanisation Association (ATEG) president Manuel López Caamaño said during the organisation’s 60th annual conference.
“Our sector offers a profitable, durable, and sustainable solution with a lower carbon footprint than other industries. Galvanised steel can drive Europe’s growth by ensuring its independence from external markets in an increasingly uncertain international context,” he observed.
Spanish galvanised steel production totalled 548,000 tonnes in 2024, up 1% on 2023, Kallanish understands. Of this total, 39% was directed towards the energy sector, a decline of approximately 4% year-on-year, primarily due to geopolitical instability and weaker revenue prospects from renewable energy projects in Spain. The construction sector, including building works, infrastructure, pipelines, and bridges, accounted for up to 25% of galvanised steel demand.
Spain remains the fourth-largest country in the eurozone in terms of production capacity. The galvanizing sector currently operates 39 plants, generating a turnover of around €200 million ($217.4m) and supporting more than 3,000 direct jobs.
“There is still a long way to go. While in the US, 18% of steel is galvanised, in Spain, it does not even reach 5%, which highlights the vast potential of the sector,” López Caamaño concluded.
Iberian coil market doubts hikes amid weak demand
The Spanish and Portuguese hot rolled coil market is holding steady despite weak domestic demand and global trade uncertainties tied to US tariffs.
While large mills remain cautious, assessing how international trade policies will play out, local availability of HRC suggests that price increases might be more speculation than reality, at least for now, according to Kallanish sources.
“The reality is that here in Spain, HRC is available. Speculation about a potential price increase for April is more of a market rumour. What is clear is the persistent weakness in domestic demand, meaning customers will struggle to absorb higher prices,” one trader explains.
Another market participant confirms that local producers are not actively exporting and have not significantly increased their offers in recent weeks. He suggests that while prices are likely to remain steady in the short term, an increase could materialise towards the end of March.
“Service centres initially expected international prices to rise quickly due to the US tariffs, but this has not yet happened,” he notes. “Import activity has been quiet in recent weeks, as the European market awaits the announcement of European Commission safeguard measures. As a result, local mills are holding back on price increases for new orders.”
Spanish mills are currently quoting S235JR grade HRC at around €670-680/t ($728-738) delivered.
Todor Kirkov Bulgaria
Spanish rebar prices keep moving up
Spanish rebar prices continue to rise, with levels gradually hiking by €15-20/tonne ($16.18-21.59) since the beginning of 2025. The recovery has been supported by increased demand in the construction sector, which is optimistic now at the start of the high season, sources tell Kallanish.
“Construction activity is resuming in Spain, with most private house building projects having started. The level of demand in the public sector is also higher. Increased activity is observed in the Valencia area, where recovery funds are already being used in the wake of the DANA [last October], Europe’s most catastrophic flood since 1967,” a market participant says.
The Spanish government is also prioritising large-scale infrastructure projects and works in the renewable energy sector, the source observes.
According to one distributor, rebar prices will remain stable in the coming weeks. “It is normal, at this time of the year, that purchases for small buildings improve. The end consumer is realising the market will not change much in March. April mill prices, however, will be subject to the current increase in scrap values,” he adds.
The monthly index for Spanish domestic rebar prices in February increased compared to the previous month, data published by the Spanish Chamber of Commerce show. The index stood at 190.51, up 1.34% on January. It was also up by 10.41% year-on-year. The index is based on a value of 100 in 2014.
16mm rebar is currently offered in Spain at €360-368/t ($353.3-360.5/t) ex-works base. An additional €262/t for size extras and loading expenses sees transaction values at €622-630/t delivered.
Todor Kirkov Bulgaria
Unesid calls for protecting steel industry, value chain
Spanish steel association Unesid has urged the European Union to take unified action to secure competitive energy prices, strengthen trade control instruments, and introduce new financing options to ensure the steel sector’s viability.
The association was part of the Ministerial Conference on Steel, organised on Thursday by French industry and energy minister Marc Ferraci and his Italian counterpart, Adolfo Urso, to discuss the future of Europe’s steel industry, Kallanish notes. The Paris meeting received support from Poland, Luxembourg, Slovakia, Greece, Austria, Hungary, Romania, Belgium, and the European Commission.
During the meeting, Unesid president Bernardo Velázquez emphasised the need for a coordinated European response to safeguard the sustainability and competitiveness of the steel sector amid global challenges.
“To ensure the sector’s viability, European governments must work together to establish a commercial and regulatory framework that allows the steel industry to compete on equal terms in the global market,” Velázquez said.
Unesid highlighted key priorities, including accelerating anti-dumping proceedings by allocating more resources to the European Commission. It also stressed the importance of greater control of imports, saying the origin of steel products should be determined based on the “melt and pour” system, which guarantees reliable traceability and avoids the circumvention of trade measures.
Unesid confirmed its support for the Carbon Border Adjustment Mechanism (CBAM), while calling for a compensation mechanism to help European steel exporters offset additional costs from CBAM and the Emissions Trading System (ETS).
The association also stressed the importance of strictly monitoring CBAM to ensure that imported steel meets EU standards, preventing unfair competition and trade circumvention.
Todor Kirkov Bulgaria
Revista InfoAcero Febrero 2025
En el siguiente enlace pueden acceder a la edición de Febrero de nuestra revista INFOACERO
Destacamos a continuación algunos de sus contenidos:
- Opinión – D. Josep Arimany- Junta Directiva UAHE
- Nuevo Índice UAHE: Evolución precios de aprovisionamiento septiembre-diciembre 2024
- Siderurgia: Evolución sectores consumidores, consumo real y aparente de acero – Informe Eurofer (1er trimestre 2025)
- Artículo ASCEM: “Situación Actual del Acero”- D. Antonio Yago- Presidente ASCEM
- Programa SNF Iberia- Vilamoura (Portugal), 20 y 21 de Marzo 2025
- Colaboración: “Sueño o Realidad” – D. Agustín Barroso– Director RRHH HIEMESA
Spanish auto industry remains weak despite January recovery
The Spanish automotive sector increased both production and exports sequentially in January, Kallanish notes. Performance, however, remained weaker compared to the beginning of 2023.
“January began with the same downward trend that marked the end of 2024,” comments national automotive association Nacional de Fabricantes de Automóviles y Camiones (Anfac) president José López-Tafall. “While this is partly due to factory adjustments, including changes in work shifts and new model rollouts, we cannot overlook the overall decline in the sector at a critical moment for our industry.”
He emphasises the urgent need to stimulate demand, not just in Spain but across Europe, to safeguard competitiveness. “We must align all stakeholders, establish a short-term action plan, and develop a long-term sustainable strategy to ensure the industry’s competitiveness and drive innovation in electric vehicles, the only true growth driver for the sector,” he adds.
Production in January reached 168,076 units, compared with 139,203 vehicles in December. This volume, however, was down 27.2% on the same month in 2024. Of the total, 61.8% were gasoline and diesel-powered automobiles.
Spanish vehicle exports grew in December. Shipments were 145,170 units, up from 134,813 units in the previous month but 28% down compared to a year ago.
European markets had a 92.2% share in Spanish deliveries in January, 0.9 percentage points less on-month but 1 p.p. higher year-on-year, Anfac data show.
Todor Kirkov Bulgaria
Hydnum Steel joined as Associate Member of EUROMETAL
EUROMETAL is delighted to welcome Hydnum Steel as a new Associate Member company.
Located in Puertollano (Spain), Hydnum Steel is the first green steel plant on the Iberian Peninsula and one of the first to be built worldwide. Its CO₂-free process is based on the use of renewable energy and green hydrogen.
With a production capacity set to reach 2.8 million tons of flat steel annually, the plant will be fully digitalized and will be a pioneer in the regeneration and reuse of urban and industrial waste water, becoming a model of water sustainability.
Hydnum Steel has been declared a Priority Project by the Government of Castilla-La Mancha and recognized by the World Economic Forum as one of the five most innovative projects globally in the race to decarbonize steel production.
Discover the path to green steel > hydnumsteel.com
US tariffs unlikely to sharply impact Spain
The 25% tariff on exports to the US, announced by President Donald Trump, is not expected to significantly impact Spain, according to the Spanish Chamber of Commerce (CCE). This is because relative prices of steel and aluminium are not anticipated to change substantially, CCE explains in a note seen by Kallanish.
“Change in the current trade framework would negatively impact Spain’s productive sector in aggregate terms. If the 25% tariff on EU steel imports remains in place, it could lead to a 10.4% decline in the total value of Spanish exports on average,” the commerce chamber observes.
Spanish steel exports to the US totalled 264,809 tonnes in 2024, up 0.4% compared to 263,825t in 2023. Their value was $412.2 million, according to data issued by the US Census Bureau.
In October 2021, the EU and the US agreed to implement a tariff-rate quota (TRQ) system for steel trade, which is in force until March. Under this system, 3.3 million tonnes/year of steel can be exported by the EU duty free into the US. However, once this quota is exceeded, a 25% tariff is applied.
Todor Kirkov Bulgaria
