Castellón Tile Industry: Energy Costs, Exports, and Market Trends

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The Castellón ceramic industry stands at a delicate crossroads, shaped by the energy crisis that has driven natural gas and electricity costs higher across markets. This year is expected to yield losses for many companies, a consequence of tighter energy budgets and tighter margins. Amid these pressures, the sector has seen mixed signals abroad, with the United States emerging as a key customer for Spanish tile in recent years, even as signs of cooling in some markets appear.

Despite the challenging environment, there are pockets of recovery. The United Kingdom has stood out in 2022 as a major focal point for acquisitions, reflecting a gradual easing post-Brexit and a shift in trading dynamics with the European Union. Data from leading tile employers indicates a notable rise in both revenue and sales volume for the first months of the year, suggesting resilience despite ongoing headwinds.

triggered development

By the end of September, export performance provides a clearer picture of the market. Spain’s ceramic sales to the United Kingdom grew by 19.2%, strengthening the UK’s position as the third-largest buyer of these tiles. Revenue increased by 34.6%, reaching 201.8 million euros, marking a robust performance on this route.

Conversely, the dynamics in other regions reveal a more uneven picture. The United States, while still a top customer, shows a 11% drop in volume measured in square meters over the analyzed period. Invoicing in this market rose strongly, up 23.8% to a total around 409 million euros, driven by inflation and price effects rather than sheer volume changes, indicating pricing power amid cost pressures.

According to ASCER, the year 2022 closed with a 17.4% rise in sales compared with 2021, accompanied by around 5.7 billion euros in invoices versus 4.855 billion the prior year. The energy issue remains a dominant factor, now accounting for roughly 45% of the sector’s total bill. The surge in energy costs is partially offset by efficiency measures, but the sector still expects a substantial impact, with losses estimated near 1 billion euros—an outcome that underscores the vulnerability of the supply chain to energy pricing shifts.

in other countries

Looking at foreign markets by export volume, France shows a marginal uptick of about 0.7%, while Italy demonstrates a stronger expansion at 19.7%. Germany also posts growth, though at a more modest pace of around 11.9%. By contrast, Saudi Arabia and Morocco experience notable declines of 15.5% and 24.2%, respectively, signaling regional variances in demand patterns and competitive dynamics.

brake in the last quarter

The final quarter of the year remains a sensitive period for Castellón tile exports, echoing the challenges witnessed in late 2021 when rising gas prices squeezed margins. The UK market shows signs of cooling relative to September 2021, and forecasts suggest continued softness through the near term. Yet the overall annual outcome could still be positive, potentially defying the earlier trend where yearly sales either stagnated or lagged behind the strongest buyers.

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