Venezuela’s once-prominent steel production chain has suffered a near-total collapse, despite the country’s vast iron ore and natural gas reserves.
The country’s crude steel production peaked at around 5 million metric tons in 2007, but has since fallen to negligible levels, with capacity utilization estimated at just 1% today. The downturn accelerated following the renationalization of major steel producer SIDOR, after which four private directors were replaced by 24 state-appointed executives. Analysts say management decisions prioritized short-term worker benefits over equipment maintenance and reinvestment, accelerating asset deterioration.
Venezuela was once the world’s largest exporter of DRI/HBI, shipping around 3 million mt per year, with production peaking at 9 million mt in 2005 and an 85% utilization rate. Output has since declined sharply, with current utilization estimated at only 7%, while exports have dropped to around 600,000 mt annually, mainly to Europe.
Iron ore production has followed a similar trajectory. From 20 million mt in 2005, output fell to below 3 million mt in 2023. In 2024, Jindal Steel and Power (JSPL) reportedly took over operations at CVG Ferrominera Orinoco, lifting production to around 5 million mt in 2025, with 80% exported to China and Trinidad and Tobago.
Despite these developments, analysts remain cautious, stating that the broader steel value chain remains structurally weakened, making a meaningful recovery unlikely in the near term, regardless of recent political shifts.
VietnamSteel by Hoa Sen Group
