Ferrominera Orinoco, Venezuela’s only domestic iron ore producer, produced 8 million mt of iron ore in 2016 and is slated to produce 7.5-7.6 million mt of iron ore in 2017. The company has an annual installed capacity of 25 million mt of iron ore, 3 million mt of pellets, and 1 million mt of HBI.
According to news reports, Venezuela has encountered strong political and economic turmoil in 2017, and the Venezuelan steel sector, through its various organizations, has stated that “price controls on steel are harming the steelmaking and metalworking domestic industries.” Internationally, exports have also been limited due to the “high country risk consideration” by buyers, adding to reduced demand.