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Try the Free AI Search EngineSouth America Steel Market Insights: Positive Developments Amid Rising Plant Activity
Recent developments in South America signal a very positive sentiment in the steel market, largely influenced by notable changes in Venezuela’s oil sector as detailed in “Venezuela gets back to its old business” and “Venezuela overthrows Chavez-era oil laws.” These transformations in oil policy could correlate with increased interest in local industries, including steel, and reflect in the observed improved plant activity levels.
Measured Activity Overview
Steel plant activities have shown fluctuations, with the Vallourec Jeceaba plant reaching its peak at 76.0% in November 2025. TenarisSiderca Campana has been consistently stable above 60%, while Aperam Timóteo recently improved to 47.0%. Notably, the overall activity appears significantly below the historical mean, particularly in February 2026, where activity sharply dropped to 4.0%.
The correlation between increased foreign investment interest in Venezuela’s oil sector and the higher stability in steel plant operations merits deeper analysis, although direct relationships with the observed activity levels were not conclusively established.
TenarisSiderca Campana Steel Plant
TenarisSiderca in Argentina has an integrated DRI and EAF production capacity of 1.3 million tons. Its activity level has remained consistent at around 60%, showing resilience despite regional fluctuations. The plant’s significant workforce and sustainable production processes position it to benefit from potential increases in demand stemming from overhauled oil laws in Venezuela, specifically if new investments lead to enhanced industrial activity.
Vallourec Jeceaba Steel Plant
The Vallourec Jeceaba facility operates with a combined capacity of 1 million tons predominantly through EAF and BF methods. Its high, yet volatile activity trends (peaking at 76.0%) could potentially correlate with increased steel demand driven by Venezuelan oil reforms. However, without explicit data linking these demand drivers to the plant’s specific activity levels, the implications remain cautious.
Aperam Timóteo Steel Plant
Aperam Timóteo’s activity has shown an upward shift to 47%, leaning on diverse product output including stainless steel and electric steels, key for automotive and infrastructure sectors. As the shifts in Venezuela’s oil laws may spur broader industrial revival, this plant could position itself as a pivot for procurement strategies aiming to capitalize on upcoming demand increases.
Evaluated Market Implications
Potential supply disruptions remain a concern, notably if Venezuela’s political landscape affects oil supply chains linked to steel production. Steel buyers should consider increasing procurement from TenarisSiderca and Vallourec, given their stable and improving activity levels. Leveraging the resilience of these plants while monitoring changes in Venezuela’s political situation can optimize supply chain strategies. If increased production from local steelmakers aligns with oil sector recovery, strategic stockpiling and multi-supplier contracts may help mitigate risks associated with potential future volatility in both sectors.