Spain’s Castellón ceramic industry faces another downturn as the sector waits for government action. Local leaders expect details on measures that could sustain an activity that supports 22.3 percent of the province’s economy. The latest export data for October adds to the concern, signaling continued pressure on the sector.
Export revenue has risen in recent months due to inflation, boosting the value of shipments. However, the physical volume exported has been shrinking for several months. After a 35.5 percent drop in September, the year-to-date volume through the first nine months shows a 7.2 percent decline overall.
October brought a troubling surprise in sales: revenue fell from €316.68 million in October 2021 to €300.81 million, a 5.01 percent drop. This marks the first time that shrinking sales align with reduced export volume rather than only price effects.
accumulated data
Between January and October, tile exports reached €3,878.9 million, marking a 28.34 percent increase compared with the same period last year. Nonetheless, this stronger top line comes after accounting for sharply higher raw material costs and especially natural gas, which dampens net gains.
In its latest report, the ceramics association AscerIt notes that energy costs alone are projected to reach €2,566 million in 2022, or roughly 45 percent of total revenue. With these costs, the year is expected to close with a substantial loss, near €1,000 million.
No new help
To confront this worrying landscape, which has put more than 9,000 ceramic workers on temporary layoff, both employers and unions, along with regional and national policymakers, have urged the government to begin targeted relief to curtail the dramatic rise in energy prices. Current electricity costs are about seven times higher than in the first quarter of last year. In this regard, officials point to Italy’s approach of tax relief to reduce its gas bill by around 40 percent.
On November 23, Prime Minister Pedro Sánchez met with Ascer leaders and pledged fresh aid to avert a sector-wide disaster. More than three weeks later, the Minister of Industry, Reyes Maroto, reiterated that measures would be announced before year-end, though the specifics remain unclear. Ascer stated that there has been ongoing dialogue with authorities, even as concrete details lag.
The restlessness expands to the enamel
The unease extends through other links in the ceramics cluster. From glaze and frit manufacturers to supply chains, general secretary Manuel Brevadue underscored that a lack of relief has triggered a demand crisis that directly affects orders. He advocates direct support proportional to the scale of the crisis, arguing that current aid levels are insufficient to stabilize production.
Without decisive action, he warned, shifts in production and investment will accelerate, and temporary layoff schemes will intensify, affecting groups like Altadia, a major enamel and frit producer. To prevent deeper damage, Brevadue urged management and policymakers to intervene with immediate, direct assistance that targets core needs across the sector.