The Venezuelan opposition' victory in Sunday's National Assembly elections has at least some local steel distributors and traders hopeful of improvements for the industry, sources said Monday.
"Expectations for the industry rely mainly on a recovery of international trust in the country's business climate," a Caracas-based trader said.
The opposition Democratic Unity coalition, or MDU, won 99 seats in the 167-seat assembly, while the ruling United Socialist Party, or PSUV, took only 46. The results for another 22 seats are yet to be declared. MDU leaders have said they were confident of ultimately taking at least 112 seats in the assembly.
After results were announced Sunday, President Nicolas Maduro asked for a meeting with MDU leaders to discuss an end to an "economic war" waged by the opposition.
One market source, in response to Maduro's remarks, said: "An end to this economic war may be helpful for the country, as it would generate less instability, thus more investments."
With a majority in the assembly, the opposition could enact basic laws and approve the budget and government debt. A two-thirds majority could also give the opposition the ability to call a constituent assembly to write a new constitution and propose constitutional reforms via a referendum, moves that could threaten Maduro's hold on power.
Venezuela's next presidential elections are scheduled for April 2019.
Venezuela is in a deep economic recession this year, pushed mainly by strict control of the currency and the sharply fallen price of oil.
