Spain’s steelmakers’ association UNESID has put forward 10 proposals to strengthen the industry’s competitiveness. Its priorities include lower energy costs, protection from unfair imports and support for industrial decarbonisation.
The proposals were sent to Spain’s main political parties ahead of the general election scheduled for November 29. UNESID urged the next government to make industrial competitiveness a priority in economic, energy and climate policy. The association says the sector faces pressure from global steel overcapacity, high energy prices, competition from third countries and rising regulatory requirements.
Energy costs and decarbonisation
Spain’s steel industry consumes around 10 TWh of electricity and the same amount of natural gas each year. UNESID called for lasting measures to bring the final electricity cost for energy-intensive industries to about €40/MWh. Possible steps include cutting network charges and levies as far as permitted, reviewing tariff periods and system adjustment costs, and maximising compensation for indirect carbon costs.
The association also called for specific support for industrial gas consumers and measures to respond to energy crises. It said timely access to electricity grids is essential for electrification and emissions-reduction projects, warning that insufficient grid capacity could delay investment.
On the EU Emissions Trading System, UNESID proposed retaining sufficient free allowances while the risk of production moving to countries with less stringent climate rules persists. It also called for removing conditions that disadvantage industrial facilities and directing ETS revenues towards modernising industry. The association said the Carbon Border Adjustment Mechanism should be extended to downstream steel products as soon as possible, alongside an effective safeguard for European steel exports.
Market protection and demand for European steel
Global steel overcapacity exceeds 640 million mt, according to UNESID, putting European producers under pressure from subsidised imports and market distortions. The association urged Spain to back effective implementation of the EU’s new steel regulation and ensure that future revisions do not weaken it. UNESID proposed extending the regulation in 2027 to products made predominantly from steel, while strengthening EU trade defence tools and customs enforcement resources.
To support domestic production, the association called for a European preference in public procurement, publicly funded investment and strategic industrial value chains. It recommended a target of at least 50% European-origin steel, verified under the “melted and poured” principle. UNESID supports technology-neutral low-emissions criteria and says steel from third countries should qualify as European-origin only if those countries meet equivalent European standards on labour, the environment, climate policy and fair competition.
Scrap and support for businesses
Spain’s steelmakers process about 9.3 million mt of scrap into new steel each year, recover nearly 80% of their waste and by-products, and recirculate more than 90% of the water they use. UNESID said competitive access to scrap and other strategic materials is essential, alongside support for industrial recycling and the removal of unnecessary regulatory barriers to the circular economy.
Other proposals include faster industrial permitting, more financial support for decarbonisation investment and operating costs, and stronger innovation programmes accessible to small and medium-sized steel companies. The association also called for improved industrial employment and training, stable regulation, and closer coordination among Spanish authorities responsible for customs controls and enforcement of EU trade and environmental rules.
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