[Spanish Steelmakers Curtail Production as 2026 Energy Overcosts Reach $749 Million]

Published: Sep 24, 2026 14:46 (GMT+8)

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Spanish steelmakers have begun temporarily halting production during periods of peak electricity prices as sharply higher energy costs weigh on the sector, according to Spanish steel industry association UNESID.

UNESID estimates that Spain's steel industry will face around $749 million (€658 million) in additional energy costs between March and December 2026. Around $514 million (€452 million) of the total is expected during September-December, compared with €206 million accumulated through August. Electricity accounts for an estimated $459 million (€403 million) of the total additional cost, while gas accounts for around $290 million (€255 million).

The association said adjustment services are adding around $23/MWh (€20/MWh) to electricity costs, prompting steelmakers to stop production during the most expensive hours. UNESID warned that such curtailments could increase if current price levels persist.

Electricity prices are forecast at around $163/MWh (€143/MWh) in the fourth quarter, while natural gas prices are expected at around $86/MWh (€76/MWh).

UNESID has called for immediate government measures, including higher compensation for indirect carbon costs and continuation of reduced electricity-grid charges for energy-intensive industries. The association said around 70% of Spanish steel production is exported, with approximately two-thirds of exports destined for other EU markets.

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