With large iron ore and natural gas reserves, Venezuela was an important steel producer and the world’s largest DRI/HBI exporter back in 2007.
Crude steel production peaked at five million mt per year in 2007, declining constantly 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 replaced by an astonishing 24 state-appointed directors. This new management prioritized distributing benefits to workers, which significantly reduced the funds allocated for equipment maintenance.
In the DRI/HBI international market, Venezuela was the world’s largest exporter, with 3.0 million mt per year, having declined today to the seventh position with 600,000 mt per year, destined mainly to Europe. Its production peaked at nine million 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 million mt in 2023.
Reports indicate that in 2024, Jindal Steel and Power (JSPL) took over CVG Ferrominera Orinoco's iron ore operations, which produced 5 million mt in 2025, with 80 percent exported to China and Trinidad and Tobago.
Analysts report that, not withstanding recent political developments in Venezuela, the ongoing decline within the steel industry and its related production chain suggests a pessimistic outlook for recovery, which is unlikely in the near future.
