Evolution of Spanish Steel Production and Railway Impact

The Steel Industry in Spain

The Steel: The development of the Spanish steel industry was less quick than that achieved by the textile industry. Although demand grew, there was a departure from the industrial sector. The reasons for this slow pace were:

• Lacking a process of mechanization in agriculture and other industrial sectors.
• The great demand for iron that the installation of the rail network in Spain required was not met because the 1856 Act allowed the free import, tariff-free, of foreign materials.
• Foundation of iron and steel making converters required iron ore of good quality and also large amounts of carbon as an energy source.

In any case, there was a development of the steel industry in certain areas of the country, which can be differentiated based on 3 phases:

1. The Prevalence of Malagueña Steel (Up to Mid-Century)

The first attempts to create a modern steel industry developed in Malaga but failed due to the use of charcoal and the difficulty of acquiring coke.

2. The Hegemony of Asturian Steel (Mid-Century)

The existence of coal deposits in Asturias turned this region into the center of Spain's iron and steel production between 1864 and 1879. Asturian steel quickly grew because its price was lower, and it was the only area in Spain to have mineral carbon. However, it lost its hegemony because it lacked mineral carbon.

3. The Hegemony of Biscayan Steel (From the Late Nineteenth Century)

After 1876, the advent of cheaper coke to Bilbao led to the consolidation of the Vizcayan steel industry. This resulted in the loss of competitiveness for the Asturian companies, which faced much higher costs due to the use of poor quality coke obtained from autochthonous coal.

The Rail and the Development of the Market

The Construction of the Rail Network

The implantation of the railway represented a revolution due to both its great speed and the reduction in the cost of transporting goods and passengers. One of the major problems that affected the domestic market was the difficulty of communication when railway network construction began in Spain in the mid-19th century.

The Construction Passed Through Several Phases:

1. The First Rail Lines

In 1844, construction of the railway network began, and the first 3 lines were constructed: Barcelona-Mataró, Madrid-Aranjuez, and Gijón-Langreo.

2. The Expansion of the Railway (From 1855)

The Progressives approved the General Railway Law. This law established very favorable conditions for construction:

• Regulating the formation of construction companies.
• Guaranteeing foreign investment in case of war.
• Subsidizing the cost of construction.

Positive Consequences of the Railway

The railway represented a revolution because of its greater speed and the remarkable reduction in the cost of transportation systems.

The Adverse Effects

The tariff franquizia (exemption) for the implementation of materials.