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Guatemala’s $600 Million Upgrade of the Puerto Quetzal Port is Expected to Surge Demand for Building Materials such as H-beams

Guatemala's largest deep-water port, Porto Quésá, is set to undergo a major upgrade: President Arevalo recently announced an expansion plan with an investment of at least $600 million. This core project will directly stimulate market demand for construction steel such as H-beams, steel structures, and sheet piles, effectively driving the growth of steel consumption both domestically and internationally.

Puerto Quetzal Port

Port Renovation: Gradual Breakthrough to Relieve Congestion in Capacity Utilization Pressure

As the largest commercial and industrial port in Guatemala, Puerto Quetzal is also responsible for the bulk of the nation's import and export cargo and handles more than 5 million tons of cargo every year. It's a major hub for Central America in connecting with the Asia-Pacific and North American markets. The upgrade project to be spearheaded in late 2027 and will be carried out in four stages.

The first stage will include dredging the channel to accommodate bigger ships and expansion berths 5-8, reconstruction of the wharf and administrative buildings to meet the current dilemma of running at just 60 percent of its designed capacity.

Following phases will cover studies of feasibility for extension of operation, training of professional staff and engineering quality control. Ultimately, these phases are projected to enhance berth capacity by 50 percent and speed of handling cargo by 40 percent."

At the same time, a new container terminal project will be realized, for an investment totalling US$120 million in two phases, for the building of a new 300 meter long wharf with a depth of 12.5 meters, which is anticipated to generate 500,000 TEUs of annual handling capacity.

Demand for Construction Materials: Steel Is now an Essential Product in Supply Chains

The port upgrade works will be large-scale civil engineering works, and users anticipate a continuous fundamental construction steel demand that will span all construction material types.

During the principal construction of the wharf, H-beams and steel constructions are adopted in the processing of load-bearing frame construction, and steel sheet piles are applied extensively in channel dredging and revetment reinforcement. More than 60% of the steel required to complete this project is expected to come from these two types of products.

The liquid cargo terminal extension and pipeline system installation will take significant consumes of HSS steel tubes and steel bars for building pipelines of energy products transportation; steel plates for structural strengthening will be needed for container yards, refrigeration plant and so on auxiliary works.

Based on industry predictions, in tandem with the deepening of regional infrastructure connectivity projects in Guatemala, local steel consumption will grow annually at an average rate of 4.5 percent for the next five years, while the Port Quetzal port upgrade project will account for more than 30% of this additional demand.

Market Structure: Complementary Domestic Production and Imports

The Guatemalan steel market has formed a pattern of domestic production supplemented by imports, capable of absorbing the demand growth brought about by this port upgrade. Del Pacific Steel Group, the country's largest private steel company, possesses a complete industrial chain, with a market share exceeding 60%, and the self-sufficiency rate of domestic construction steel has reached 85%.

However, the project's demand for high-quality shipbuilding steel and special steel structures still relies on imports from countries such as Mexico, Brazil, and China, with imported steel currently accounting for approximately 30% of the local market. For foreign trade companies, it is crucial to focus on the high-temperature resistance and moisture-proof properties of their products for tropical climates, while also preparing Spanish-language materials to align with local business communication habits.

The expansion of the Puerto Quetzal port will improve the competitiveness of Guatemala in international trade, but at the same time promote the growth of related industries such as materials for construction and machinery for construction. As bidding for the project advances, the appetite for core building materials such as steel will be unleashed, and global building materials firms will have a crucial window to accurately lock in on the Central American market. 

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Post time: Oct-30-2025