Spain’s steel production declined in June
According to data compiled by SteelRadar from the Spanish Steel Producers Association (UNESID), the country’s crude steel output fell by 6.8% month-on-month in June 2025 to 1.06 million mt. On a yearly basis, production remained unchanged.
In the January–June period, Spain’s total steel production rose by 6.8% compared to 6.19 million mt in the same period of 2024, reaching 6.61 million mt.
In June, the Spanish steel industry also experienced a decline in scrap recycling. During the month, 844,000 mt of scrap was used as raw material in the production of new steel products, marking a 9.2% drop from the previous month and a 1.4% decrease year-on-year.
In the first half of the year, the sector’s total scrap recycling amounted to 5.27 million mt.
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
UNESID: EU’s energy policies insufficient to reduce higher costs
The Spanish steelmakers association UNESID has criticized the European Union’s (EU) Clean Industrial Pact and Action Plan for Affordable Energy as insufficient, given that these measures do not effectively offers solutions for the high energy costs affecting the European steel industry.
The association underlined that wholesale energy prices in the EU are still above historical levels and are two to four times higher than those in countries such as the US and China. It stated that the European Commission (EC) has proposed some solutions such as the long-term power purchase agreements to reduce industrial energy costs. However, since these measures do not pass on the reduced generation costs of renewable energy to the industry, they have yet to offer any concrete benefits. UNESID believes that higher energy costs will sustain without a structural reform in the EU’s energy market.
As a result, UNESID has called on the EC to prepare clear guidelines for designing and implementing agreements that guarantee stable and competitive energy prices for energy-intensive industries. Even though low-carbon energy investments are the right move, their effects will be seen in the medium and long term, it said. Also, the industry is in need of immediate solutions to sustain and to remain competitive in the global market, it added.
“The European steel sector faces an unsustainable situation if structural measures are not adopted to reduce the cost of energy. We cannot wait years for investments in low-carbon energy to have an effect; we need immediate solutions to guarantee the competitiveness and viability of our industry and to advance decarbonization without putting thousands of jobs at risk,” Carola Hermoso, director general of UNESID, commented.
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
Unesid appoints Carola Hermoso as general director
Spanish steel association Unesid has appointed Carola Hermoso, as its new general director. She will replace Andrés Barceló, who has been in the position since July 2009, Kallanish notes.
“Barceló will continue in his duties until January, to guarantee an orderly succession and after he will continue as an advisor to the Unesid Council until June 2025,” the association says.
Hermoso is currently the executive chief of the Spanish Galvanizers Association ATEG and president of the European Galvanizers Association’s environment and safety committee. The newly elected director worked at Unesid between September 2008 and October 2019, with role in the environment, institutional relations, sustainability and corporate.
Todor Kirkov Bulgaria