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| Spain construction |
Spanish Construction Boom Fails to Boost Steel Prices
Spain's construction sector is expanding rapidly, with EuroConstruct forecasting 4.2% growth this year. However, Spain steel prices remain subdued. The disparity arises despite business confidence hitting its highest since 2006. Residential shortages are driving construction, yet neighboring countries' low demand restricts steel price increases. Market data confirms rebar prices rose only 5.3% above the 2024 average. Meanwhile, steel beam prices hit their lowest level since June last year.
Valencia Flood Recovery and Future Steel Demand
Valencia’s flood reconstruction may gradually increase steel demand. Severe floods in October 2024 destroyed homes, infrastructure, and vehicles, prompting rebuilding projects. Nevertheless, recovery remains slow, with some businesses partially closed and subsidies delayed. Consequently, Spain steel prices have yet to react. Reports steady but not strong sales volumes. Automotive demand shows mixed signals, with vehicle replacements rising while local production fell by 5.2% through September 2025.
Supply Tightening Expected to Influence Prices
Long-term price growth is expected due to supply constraints rather than immediate demand. European Commission funding of over €23bn for Spain’s Recovery Plan will support infrastructure and renewable projects. However, Market forecasts show Spain steel prices will rise gradually as domestic mills respond to CBAM taxes and EU trade measures. Therefore, future price trends are likely dictated by policy and import restrictions rather than domestic construction growth.
ScrapInsight Commentary
Spain steel prices remain weak despite strong construction growth and post-flood reconstruction efforts. Analysts expect supply-side factors, EU trade measures, and policy-driven demand to drive moderate price increases through 2026, while profit margins stay tight.
