Analysis
July 1, 2026
Earthquakes in Venezuela delay scrap exports, sources say
Written by Stephen Miller
The significant earthquakes in Venezuela could delay scrap exports, sources told SMU.
The South American country recently experienced devastating damage from two intense earthquakes. There was major destruction in the northern areas in and surrounding Caracas, its capital city.
In addition to the tragic loss of life and property, the quake could have other economic effects on the country’s exports, which include oil, agricultural products, and ferrous materials.
Over the last several years, Venezuela has become a significant exporter of ferrous scrap. Their main destination is Turkey and tonnages range between 500,000 to 1,000,000 metric tons (mt) per year.
SMU spoke with a major scrap exporter from Venezuela about the current situation. His company ships 500,000-700,000 mt per year from Venezuelan ports. He said the earthquake damage will certainly delay shipments.
The port of La Guaira, near Caracas, is completely closed. There will be delays at Puerto Cabello as it is understaffed due to the earthquake. There are no estimates of when these ports will resume normal operations.
The good news is the industrial complex in the Guyana region, along the Orinoco River in southwestern Venezuela, has not been damaged by the earthquake.
This area includes the steelworks of SIDOR and several large producers of direct-reduced Iron (DRI) and its cousin, hot-briquetted iron (HBI).
The iron reduction business in Venezuela has seen its export tonnages fall substantially over the last 20 years.
In 2006, according to Venezuelan government statistics, the country produced 9 million mt of DRI/HBI. The US and Mexico were substantial importers. The Venezuelan government no longer publishes these statistics. However, estimates are exports totaled under 500,000 mt in 2025, according to trade sources.
