The growth of the construction sector has a limited impact on steel prices in Spain
Spain's position as one of the fastest growing economies in Europe is not fully reflected in steel prices, despite strong growth in the country's construction sector.
The country's construction sector is expected to grow by 4.2% this year, according to EuroConstruct, with business confidence in the sector recently reported to have reached its highest level since 2006. This expansion is a key driver of Spain's GDP growth, which is projected to reach 2.9% by the end of 2025, according to the latest data released by the IMF.
The positive performance of Spain's construction sector stands in stark contrast to that of most EU countries, and this is largely due to the shortage of residential buildings in the country.
- A regular review of the Spanish steel market is presented in the European Steel Review, prepared by members of the European Parliament. The monthly edition also includes market commentary, prices, price indices and six-month price forecasts for Belgium, France, Germany, Italy and the United Kingdom.
Despite this, steel prices in Spain remained under control, following the broader trend. The lack of demand in neighboring countries has limited the opportunities for price increases.
Rebar prices in the MEPs are currently 5.3% higher than the average for 2024, and 19.7% higher than in Italy for the same period last year. The closure of the Grupo Industrial Cristian Lay steel mill in Corrugados Getafe, near Madrid, in June, as well as demand from housing construction projects, may also have contributed to the rise in rebar prices.
However, prices for steel beams are at their lowest level since June last year. They are also the lowest among the countries assessed in the European Steel Industry survey conducted by MEPs (Belgium, France, Germany, Italy, Spain, and the United Kingdom).
Post-flood recovery in Valencia
Twelve months after the devastating floods in Valencia, European Parliament respondents report that the demand for steel from the Spanish construction sector may increase further due to investments in the reconstruction of the region.
According to estimates by the Independent Fiscal Responsibility Authority, in 2025, the GDP growth of the Valencia region, Comunidad Valenciana, will be about 2.7-3.3%, while the contribution of the construction sector is growing.
After the flood at the end of October last year, which claimed the lives of 227 people and caused unprecedented damage to homes, businesses, infrastructure, vehicles and agricultural land, restoration work is underway.
To date, MEPs have interviewed service centers and distributors in the region. We inform you about enough