Unesid, the Spanish steel industry association, stated its members are committed to decarbonisation but highlighted ongoing hurdles. It pointed to the absence of proven, industrial-scale technologies and significant fluctuations in energy prices as major barriers to the substantial investments required. In a message congratulating the new Minister of Industry, Unesid underscored the responsibility of the sector to pursue decarbonisation while navigating these economic realities. This stance reflects the position of industry leaders who are seeking stable, competitive energy conditions to support long-term modernization efforts.
According to Unesid, which includes ArcelorMittal among its members, there is a critical need for electricity priced at levels that enable electro-intensive users, particularly steel producers, to compete on equal terms with major European economies such as Germany and France. The association’s Secretary General, Andrés Barcelo, stated that without an energy framework that supports substantial investment in decarbonisation, projects cannot move forward. He emphasized the importance of a neutral technology policy that delivers energy security to industry, especially sectors that demand large amounts of power.
The industry body warned that decarbonisation would be impractical if alternative energy vectors, including green hydrogen, are not available in sufficient quantities and at prices that are compatible with Spanish manufacturer costs. There is concern that steel prices remain high, limiting demand and undermining the economic viability of transitioning to lower-emission production methods.
Unesid issued its statements on the same day that the new Spanish government ministers assumed office, amid growing scrutiny of ArcelorMittal’s delays in approving a direct reduction furnace powered by green hydrogen. The company has declared plans to decarbonise the Asturian steel complex by replacing one of its two blast furnaces at Veriña and preserving the integrated factory’s long-term status. At present, ArcelorMittal is advancing the construction of a future hybrid electric furnace intended to replace the Gijón steel mill, though the direct reduction furnace project remains unfinished. The project is among the most costly elements of the total investment, estimated at around 1 billion, and received formal consideration for European Union aid, with a related decision recorded in early April and subsequently approved for approximately 450 million in support by the Government in consultation with the EU.
In a separate note, the government indicated that energy prices are determined by market forces and that market mechanisms remain the primary means of price setting, leaving limited room for direct state intervention in the near term.
Ünesid also announced plans to meet with Hereu to convey the sector’s needs and priorities. The association reiterated, among other points, that the PERTE decarbonisation program should prioritise large-scale projects undertaken by heavy industry, with more flexible deadlines currently extended to March 2026. The group warned that decarbonising steel operations would be impractical unless technology and energy solutions are ready; otherwise, even ambitious timelines could be derailed in the near future.
collective bargaining agreement
Meanwhile, a fresh negotiation session for the ArcelorMittal collective agreement convened in Asturias. The talks produced no major breakthroughs, and the parties have scheduled three additional meetings for the coming week with the aim of reaching an accord.
The industrial sector slowed its decline in Asturias by double digits to 5.3% after five months
In Asturias, the regional industrial turnover declined 5.3 percent year over year in September, signaling a notable easing after a sequence of double-digit decreases across five consecutive months. The fall in the Principality was slightly better than the national average, with only five districts reporting positive activity. Across the year to date, Asturias posted a 9 percent decline, higher than the Community of Murcia at 11.3 percent, while the national average contracted by about 1 percent over nine months. Turnover is closely tied to both sales volumes and industrial prices, which have begun to ease in recent months.
Meanwhile, Madrid led regional industrial growth, yet service-sector employment, the dominant economic driver in that region, fell by 6 percent. In contrast, Asturias recorded a notable uptick in service turnover, rising 5.5 percent in September, although momentum cooled somewhat from July and August amid the tourism cycle.
These trends illustrate how regional dynamics shape the broader outlook for Spain’s industrial sector as it negotiates energy costs, decarbonisation commitments, and evolving demand. Observers note that policy clarity and stable energy pricing will be crucial for sustaining investment in green transitions across manufacturing and heavy industry.
Source attributions: Unesid statements reflect the official positions of the Spanish steel industry association. Industry data referenced here align with regional economic reports and company announcements reported in industry briefings and government releases. These insights are provided for context and reflect ongoing discussions about energy policy, decarbonisation timelines, and sectoral investment needs. Further updates are anticipated as governance and market conditions evolve.