Venezuela's steelmaker Sidor records no exports in eight months

It has been eight months since Venezuela's state-owned steelmaker Sidor halted exports to meet domestic demand. However, despite the action, domestic steel supply continues running low.   

Although Sidor's liquid steel output in January 2013 amounted to 157,258 tons and surpassed by 18.6% the figure recorded a year earlier (132,576 tons), the figure is 58% below that of January 2007 (373,000 tons), just one year before the nationalization of the company.  

This year, the steelmaker aims at producing 4.45 million tons of liquid steel. Therefore, monthly output should total no less than 335,000 tons. This would allow the company to break even.

Sidor's CEO Pedro Acuña underscored that the company is reporting daily losses estimated at USD 2.6 million, based on last year's balance.

"As long as production does not reach 335,000 tons per month, the company will not break even and will continue reporting monthly losses, even despite all its income."

Regaining its international market share and increasing production would allow the state-run steel company to better off its financial status. In 2012, in fact, the board of directors approved a request aimed at exporting surplus steel within the framework of a program to be completed by December 2012. This could have allowed the company to obtain raw material, for instance. However, the company's goal was not accomplished.

Translated by Jhean Cabrera