The collapse of the steel production chain in Venezuela
Release Date:
2026-02-03
With large iron ore and natural gas reserves, Venezuela was an important steel producer and the world's largest DRIHBl exporterback in 2007.
Crude steel production peaked at five milion mt per year in 2007, declining constanty since then to a non-relevant volume today.
with a utilization rate of its production capacity reduced to one percent.
Shortly after steel producer SIDOR was renationalized, local media reported that the four private company directors were replacedby an astonishing 24 state-appointed directors. This new management prioritized distributing benefits to workers, whichsignificantly reduced the funds allocated for equipment maintenance.
In the DRl/HBl international market, Yenezuela was the world's largest exporter, with 3.0 milion mt per year, having declined todayto the seventh position with 600,000 mt per year, destined mainly to Europe. Its production peaked at nine milion mt in 2005, with
autilization rate of 85 percent, falling consistently to 7 percent today.
With iron ore production of 20 million mt per year in 2005, the Venezuelan output declined to less than 3 milion mt in 2023.
Reports indicate thatin 2024, Jindal Steel and Power (JSPL)took over CVG Ferrominera Orinoco's iron ore operations, whichproduced 5 million mt in 2025, with 80 percent exported to China and Trinidad and Tobago.
Analysts report that, not withstanding recent political developments in Venezuel, the ongoing decline within the steel industry andits related production chain suggests a pessimistic outlook for recovery, which is unlikely in the near future.
From: Steel Orbis
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