Editor's Note
This editor’s note highlights the key facts and market implications behind “Ceramic Industry Gas Consumption Falls 12% One M”, with emphasis on sourcing, product fit, fabrication, logistics, or buyer impact.
The war in the Middle East continues to produce worrying figures regarding its economic impact, and the province of Castellón is no exception. The slowdown in production by ceramic sector companies due to rising energy costs and the war's effect on sales to this Asian region, which business sources warned about in the first weeks of March, is evident in the statistics for gas consumption by this industry, based in Castellón.
According to data provided by Enagás, the Spanish construction sector – ceramics comprises the vast majority of companies grouped in this activity – reduced its gas consumption by 12.2% in March. With 1.7 TWh, the sector moderated its energy consumption by double digits in the month of the war – the conflict erupted on February 28th – in line with other Spanish sectors such as agri-food, textiles, paper, and metallurgy, which also recorded a double-digit decline.
The contraction of more than 12% represents the largest drop in energy demand in over a year, injecting uncertainty into the sector's activity. Although the price of gas is now trading at less than 50 euros per megawatt/hour – yesterday it barely exceeded 42 euros on the TTF – it is still much higher than before the Strait of Hormuz blockade. Cumulatively through March, construction gas consumption amounted to 19.6 TWh, 2% less than in 2025.
It is still unknown how sectoral production evolved in March. In February, just before the conflict, the Industrial Production Index (IPI) for the tile sector grew by 12.2%, 9.7% year-to-date. It is even worth noting that the March gas consumption figure is more negative than that of March 2022, following the Russian invasion of Ukraine, when it fell by 6.8%. However, in the following month, April 2022, the sector's gas demand fell by more than 21%.
Chamber of Commerce Recommendations
Regarding various measures aimed at mitigating the effects of the war, the Valencia Chamber of Commerce, in its recent report 'The Valencian economy facing the consequences of the war in Iran', states that "Europe's energy dependence has become one of the critical vulnerabilities of our economy. The recent shocks in energy prices have transferred a vast volume of resources out of Europe, have given rise to emergency interventions, and have generated strong pressure on public finances."
The Chamber believes public authorities must promote "additional temporary support measures for productive sectors most affected by the increase in energy costs and other derived inputs, so that the cost increase does not fully impact final prices and thus avoid second-round inflation."
It also calls for "structural measures that strengthen Spain's strategic autonomy, given that the Spanish Government's margin for action is more limited today than four years ago (with the crisis due to the war in Ukraine), due to the high existing public spending and debt."
The Chamber sees it as key to "modify the current policy of closing nuclear power plants, as they provide clean, stable, and low-cost energy, fundamental for crisis moments like the current one." Simultaneously, it urges to "continue researching and investing in renewable energies that reduce dependence on external oil and gas." Furthermore, it stresses the need to "enhance aid for electro-intensive consumers and the compensation of indirect CO2 costs are key tools to mitigate the impact of energy prices on industry. Beyond economic support, these mechanisms promote energy efficiency, emission reduction, and more strategic management of electricity consumption."
Concerns Over EU Emissions Trading Scheme
But the war is not the only energy-related concern for the industry. Also concerning is the European Commission's forecast to reduce free allocations of CO2 emission allowances by 34% for the period 2026-2030. The publication of the new benchmark indices seems imminent, and just yesterday a new letter signed by more than European companies and industrial associations – including the ceramic association, Cerame-Unie – was revealed.
“The proposed update of the benchmark indices produces a fundamentally unbalanced result,” warn the European associations in their letter.
Source: Read the original article | Published: April 17, 2026