Ongoing political instability in Venezuela continues to rattle global commodity markets, though the direct impact on the steel industry stays minimal.

As a nation holding the world’s largest proven crude oil reserves and significant mineral deposits, Venezuela remains a key geopolitical variable. For oil, supply risks and sanctions drive price premiums, especially for heavy crude, where the country accounts for 4.5% of global output.

The copper market feels the greatest pressure, as Venezuelan production struggles alongside global disruptions in Chile, Indonesia, and Panama. This tightening supply, coupled with rising demand from AI infrastructure and electric vehicles, supports higher copper prices.

Although aluminum may see temporary growth due to bauxite supply concerns, the steel sector is largely not impacted. With Venezuela accounting for only 0.1% of global iron ore production, steel prices continue to depend on Chinese demand and broader economic trends rather than regional turmoil.