Venezuelan steel and metallurgical sectors in deep crisis - Report

BNamericas reported that Venezuela's steel and metallurgical sectors are in a very serious crisis.

Mr Carlos Roman Chalbaud steel sector executive told BNamericas that "The nationalization of Sidetur and the Sivensa plant ended the private steel sector. Sidor doesn't look good, aluminum is state-owned and is bankrupt, so the situation is very serious."

According to Mr Chalbaud, the country's few processing plants are either halted or operating at minimum capacity. He said that "It's not just that there are no expectations, it's that the business is over, there are no operations."

He said that Siderurgica Zuliana is currently the only private plant operating in the country. Sizuca is controlled by Brazilian steelmaker Gerdau and produces about 100,000 tonnes per annum.

According to Mr Chalbaud, the government decreed nationalizations have led sector companies to drastically lower their production levels, which in turn has led the country to import rebar to meet local demand for this input for construction. He said that some of the nationalized companies such as Sidor, Venprecar, Comsigua, Matesi, and Orinoco Iron have been under state control for two years and although at some the compensation payments still need to be decided, the expectations for growth are very low.

（Sourced from www.bnamericas.com）