Spain occupies the third place in steel production in the European Union, surpassed by Germany and Italy, and with very little difference with respect to France. In 2015 it was the sixteenth largest steel producer in the world, according to the data of the World Steel Association. Spain has 22 steel mills, complemented by 50 primary processing and rolling facilities, which translates into more than 28 jobs. According to the data of the UNESID450 million euros are invested in machinery and facilities. This investment makes it possible to increase productivity to continue competing with international markets.

Currently, our country only has one blast furnace steel plant, located in Asturias and belonging to the multinational ArcelorMittal. The rest are electric arc, which means depending on the variable energy prices. Besides, The main buyers of steel are customers from the automotive and construction sectors.. 15% of produced steel It is used in the transportation sector.

In this article we are going to inform you in detail about the most relevant data on the steel market in our country.

The steel market in Spain: large increase in imports

Currently, this market is characterized by purchases abroadwere imported 8 million tons of foundry, iron and steel and their manufactures in the first 8 months of 2022. By importing, companies achieve cheaper prices, thanks to the difference in labor and environmental regulations. The countries from which the largest amount of merchandise is received are South Korea, Japan and India.

The European steel industry warns that this situation may lead to the closure of the part of the steel companies that are dedicated to its production. The blast furnaces would be closed and work would only be done on the final part of the process. This requires less financial investment, but also a smaller number of personnel. This is what has happened in France with the Florange factory and in Belgium with Liege. This impact should be studied in depth before making any decision.

Reduction in demand in the metal sector

Metal is necessary to carry out the activities of many companies, since it is used in the manufacture of machinery and tools that improve the quality of life of society. Steel machinery is used, for example, in hospitality machines, as well as in the production of cans, essential for the correct storage of certain foods.

However, the sectors most dependent on this element are construction and automotive. Almost 60% of all steel used worldwide is invested in construction of buildings of all types, and in small and large infrastructures. This is why the reduction in demand from the most important clients in the steel sector is so relevant. This is due, in large part, to the fact that Inflation has affected the price of raw materials, among many other key elements for its correct functioning.

As we have mentioned previously, in our country almost all steel mills are electric arc, which causes these companies to depend completely on energy prices, which are not only unstable, but are also on the rise. This generates great uncertainty and translates into a reduction in demand from the main clients in this sector, such as the automotive and construction sectors.

El Steel consumption is a reflection of a country's GDP, since this element is present in most activities, both business and daily. Therefore, an economic slowdown is expected in the first months of 2023.

Positive evolution of turnover

However, the Metal Industry Turnover Index (ICNMET) increased by 2022% in the month of November 14,4, which represents a positive evolution in general. Prices in December did not rise with the same intensity as in previous months in all areas of the metal sector. It is worth highlighting the remarkable price slowdown in metallurgy activities, as well as in the manufacture of iron, steel and ferroalloy products.

However, Steel companies do not venture to make any business forecasts for 2023. The sector is waiting to know what the real evolution of the price of raw materials will be, such as, for example, nickel, molybdenum or chromium, essential for its operation.

Conclusion

We hope that this article has shed some light on your doubts about the steel market in Spain. How could you have observed, Instability is palpable in all industrial sectors, but even so, a favorable evolution is observed in the steel business. The important thing when purchasing steel products is to have true professionals who care about the quality of their products. At Ferros Texar we are specialists in products for all types of companies, from small mechanical workshops to large industries, without forgetting laser sheet metal cutting companies or construction companies.

Our headquarters are located in Barcelona, ​​specifically in Lliça de Vall. However, we distribute our products throughout Spain. We offer you all types of steel sheets, from galvanized steels to structural, through perforated sheets, custom plates and much more. Ask us about what you need. We will assist you in a personalized way to advise you on the product that best suits your needs. Our customer satisfaction is our number one priority. We strive every day to be a reference in the steel market in SpainContact us without obligation and tell us what we can do for you.