Crude steel production peaked at five million tons per year in 2007, since then steadily declining to a volume that is not relevant today, and its capacity utilization rate has dropped to one percent.
Shortly after, steel manufacturer SIDOR was renationalized, local media reported that four directors of the private company were replaced by a staggering 24 directors appointed by the state. This new management has prioritized the distribution of benefits to employees, which has significantly reduced funds allocated for equipment maintenance.
In the international PVG/HBI market, Venezuela was the world's largest exporter with 3.0 million tons per year, dropping to seventh position today with 600,000 tons per year, mainly destined for Europe. Its production peaked at nine million tons in 2005, with a utilization rate of 85 percent, and today it is steadily declining to 7 percent.
With iron ore production of 20 million tons per year in 2005, Venezuela's production dropped to less than 3 million tons in 2023.
Reports show that in 2024, Jindal Steel and Power (JSPL) took over management of the CVG Ferrominera Orinoco iron ore facility, which produced 5 million tons in 2025, with 80 percent exported to China and Trinidad and Tobago.
Analysts report that despite recent political developments in Venezuela, the ongoing downturn in the steel industry and its associated production chain suggests a pessimistic outlook for a recovery that is unlikely in the near future.
