State-run steelmaker Sidor has not produced steel since January due to the lack of electricity that has hit Venezuela, a company’s spokesperson told SteelOrbis, adding there is no forecast for it to resume production.
“We’re still waiting for a government’s decree that could allow the company to restart operations,” he said in a phone interview.
Sidor was expected to resume operations on March 1, as the steelmaker had already received feedstock to run its mill. However, the low levels of the Simon Bolivar hydroelectric, or the Guri dam, prevented the steelmaker from resuming operations.
The Guri dam has reached water levels of less than six meters, causing scarcity of water in Venezuela.
Both billet and slab output at Sidor have halted due to a government’s decree. A media report added that the company’s CRC mill also halted its operations in January.
A trader told SteelOrbis that Sidor is short on raw materials. Rumors of wire rod being offered to the US have also appeared, but those orders were allegedly canceled once Sidor realized it didn't have billet to make the product.
A source at a major global steelmaker said late last year that Sidor was offering low-priced HRC at $280/mt FOB.