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VirFerrOx

Scrap Sagas & Subsidy Struggles Stymie Spanish Steel’s Sustainable Sojourn

बुधवार, 4 जून 2025

Synopsis: - Spanish steel lobby Unesid, led by Bernardo Velázquez & Carola Hermoso, has appealed to the EU for stronger trade protection, scrap export restrictions & energy subsidies to support the sector’s green transition.

Plea for Parity & Protection in a Precarious Production Paradigm

Spain’s steel industry, represented by the national association Unesid, has amplified its appeal for immediate European Union intervention to preserve industrial competitiveness amid energy volatility & foreign market distortions. In a high-level dialogue on 3 June 2025, Unesid president Bernardo Velázquez and director general Carola Hermoso met Miguel Gil Tertre—chief of staff to EU Commissioner Teresa Ribera—to press for structural safeguards against what they termed "untenable asymmetries" in global steel trade & energy dynamics.

 

Fervent Fulmination Against Ferrous Free-Flow Fallacies

Central to Unesid’s demands is the imposition of restrictions on ferrous scrap exports to countries failing to uphold EU-aligned environmental norms. As scrap is a cornerstone for green steelmaking, particularly via Electric Arc Furnaces, its uncontrolled outflow could derail Spain’s decarbonisation ambitions. “We consider it crucial that Europe prohibits scrap exports to nations that bypass our sustainability standards,” the association noted, accentuating the scarcity-driven vulnerability of EAF supply chains.

 

Subsidy Scarcities & Spiralling Surcharges Stifle Sustainable Steelwork

Unesid emphasised the deleterious effect of soaring energy costs on Spanish steelmakers, urging Brussels to ensure "competitive & predictable" pricing. The call includes temporary compensations for additional outlays incurred during the protracted pivot to renewables. Industry insiders argue that such costs, ranging from $90 to $120 per megawatt-hour, have already rendered several furnaces marginally viable. The absence of direct fiscal buffers risks a decimation of domestic industrial output.

 

Decarbonisation Dreams Demand Deliberate Disbursements

The steel association is lobbying for robust EU funding mechanisms to underpin decarbonisation. However, they stress that targets must be “realistic & economically viable.” Instead of blanket timelines, Unesid seeks a tiered, sector-sensitive approach that acknowledges regional disparities, technology-readiness levels & market pressures. This includes financial incentives for the deployment of green hydrogen, carbon capture systems & renewable energy infrastructure tailored for metallurgical operations.

 

Defense Mechanisms for Downstream Distress

Beyond raw steel, Unesid advocates for a comprehensive trade defense mechanism that includes semi-finished & downstream products such as tubes, rebar & wire rods. These segments are acutely susceptible to dumping practices by non-EU manufacturers, particularly from Southeast Asia. Industry players warn that failure to include downstream items would lead to a bifurcated collapse, protecting core mills while eviscerating fabricators reliant on competitive input costs.

 

Green Galvanisation of Government Procurement Goals

A key proposal presented to the Commission was embedding sustainability criteria in public procurement. By mandating low-emission materials in infrastructure, defense & housing projects, the government could effectively become an anchor client for green steel. This, Unesid asserts, would catalyse domestic demand, enhance investor confidence & forge stronger trade links with eco-conscious allies. Lead markets, they argue, do not emerge by accident, but by design.

 

Resilience Rhetoric & Regulatory Recalibration Requests

The industry is also urging Brussels to recalibrate regulatory instruments to reflect current geopolitical & macroeconomic shocks. Supply chain disruptions, energy warfare & inflationary pressures have reshaped the steel landscape. Unesid insists that any new EU policies must incorporate resilience criteria, favouring adaptive capabilities, strategic stockpiles, and industrial sovereignty. Without these, the EU risks importing not just steel, but dependency.

 

Incentivisation imperatives in automotive & appliance arenas

To build a long-term market for green steel, Unesid is advocating progressive incentives across key consumption sectors, namely automotive, construction & household appliances. These markets, which absorb over 60% of Spain’s flat & long steel, hold the potential to normalise low-emission materials. Through rebates, tax breaks & certification programs, green steel could transition from an expensive novelty to an accessible norm.

 

Key Takeaways

  • Unesid urges the EU to block scrap exports to non-green countries & ensure energy price stability.

  • Spanish steelmakers seek trade defense tools that include downstream products prone to unfair competition.

  • Industry calls for realistic decarbonisation targets, public procurement reforms & green market incentives.

 

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