Venezuela's metalworking industry is working around 35% of its installed capacity, the president of the country's production and trading federation, Fedecamaras, said Wednesday.
"That is the real reason why there are no products available in the market," Francisco Martinez said.
Fedecamaras has previously said around 68% of all metalworking companies shut down in Venezuela during the past 17 years due to the economic situation in the country.
"At the moment, that is why we cannot hold imports," Martinez added.
Sidor, Venezuela's largest steelmaker, is trying to substitute its steel for imports of steel products by allocating some of its output for the metalworking industry. The sector got virtually no steel much of this year and also faced energy shortages and high labor costs.
The previous decline and almost complete lack of distribution of steel has impacted the white goods industry the most, but also re-rolling and the metal-mechanic industry.
Before Sidor's supply resumption, Venezuela's metalworking industry was importing steel to continue its operations amid the current lack of domestic product.
The most needed steel products are hot-rolled coils, cold-rolled coils and other flat finished materials. Rebar and wire rod are mostly destined to state housing program Gran Mision Vivienda Venezuela.
The steelmaker has proposed the creation of legislation to increase the substitution of its products for imports in order to contribute to the strengthening of the domestic basic production sectors.
